First, I just want to get this out of the way by saying, no inflation does not mean rising prices. Rising prices is the result of inflation. It urks me to hear one called a rise in prices "inflation" when that is not the true and original definition of inflation. In fact meaning is only used as an escape goat of what inflation really means...
When a country’s government no longer backs its currency from a tangible asset such as gold or silver the inevitable always occurs, inflation. In themepark MMOs inflation is also inevitable, but why? In themepark MMOs all (or at least most) goods are eventually acquired. At some point later in the game’s life-cycle, players participate less in activities that cause money to exit the economy. For example, once a player reaches max level, they no longer need to spend money on skill training, mount training, mounts, craft training, and other activities that cause money to exit the game (i.e. vendor purchases).
In the past year, the US dollar has risen from historic lows to recent highs. There are only a few currencies in the world that are worth more than the US dollar (the Euro, British Pound and etc). Now for US consumers this means they can purchase foreign products for a relative cheap price. Though for the last few decades, the costs of video games in dollar terms have remain relatively the same. Most video games (not including collectors or deluxe editions) are sold from $29.99 to $59.99.
The Revenue Act of 1913 was signed by President Woodrow Wilson on October 3, 1913. Originally the tax was imposed on the incomes of couples exceeding $4,000 or $3,000 for a single person. $4,000 in 1914 is worth approximately $93,924 today. So as one can see, the federal tax was directed towards the rich, but even then they were subjugated to pay only one percent of their income. Really tax rates were cheap back then compared to what we pay today. Today, the tax rate can range from 10%-39% of our income in just federal taxes only, not including other taxes such as local, state, or social security taxes.
Back in 2013 I wrote an article addressing a brief history of the U.S. Dollar and the hidden tax called inflation. Originally the purpose of this article this article was to inform my co-workers and friends the effects of inflation over a 8 year period. However, I never managed to publish it and for two years the article has been sitting in my hard-drive collecting dust. I figured while the article isn't much about video games or mmorpgs, it does talk a lot about the recent economic and monetary issues.
I'll warn you though, this article is quite long much longer than my average post. But even though it's long I believe it has valuable information that many people could use. It is to my hope that those reading this will find this a very interesting and satisfying read.