how does inflation impact the value of money 
inflation reduces the future value of current money the value of a dollar today is worth less than it will be in the future because prices go up the same dollar today will be able to buy fewer goods and services in future years money is always worth more now than it is in the future particularly due to the investment capability of money the bottom lineemployers are forced to respond when governments order wage increases for their workers they require more income to comfortably accommodate those extra wages so they tend to increase the pricing of their products and services this isn t just the result of legislation companies can voluntarily decide to pay their employers more for several reasons the result is wage push inflation 