I

INFLATION Economists defi ne infl ation as rapidly rising prices, usually due to increased demand for something that has become scarce. Many things became scarce during World War II, primarily for two reasons: the war interrupted normal shipping channels, and it diverted civilian materials to military use. Prices for everything therefore axiomatically rise-and because it takes more dollars to purchase anything, the value of one’s money falls. Infl ation therefore is hardest on those who are not employed, including housewives: they cannot expect a raise in wages to help them meet the rising prices. Retirees fi nd that their savings not only drops in value, but also that they have to spend more of it for the ordinary costs of life.