How does inflation work?
Forgive me, I know next to nothing about economics I have the brain the size of a pea. I just had a nagging question I wanted to ask. Why would it be so bad if prices for stuff started lowering? Everyone would be able to afford resources, and have money on the side to do what they want like buying their dream house or something. Is it because goods and services would have to increase due to high demand? That doesn't seem right to me. I doubt millions of people would start buying up I don't know. Pineapple pizzas and places would have to increase the price of pineapple pizzas, you know? Not everyone wants pineapple pizza. What I'm trying to say is, everyone has different needs and wants. Would demand for certain goods and resources really increase because of it? The US wastes food and resources all the time, wouldn't lower prices just reduce how much we waste? We have an abundance of grocery stores stocked full of food, and it all gets thrown out eventually.
Again, I'm really dumb. I know it's a dumb question, but I just wanna know. Can anyone explain inflation to me like I'm a 5 year old?