Answer:
<em>A low inflation rate promotes the efficient use of productive resources. When inflation is high, a substantial</em><em> quantity of individual people's time and resources from the economy are invested in searching for mechanisms</em><em> to defend themselves from inflation. </em><em>So</em><em> </em><em>, for example</em><em> </em><em>when</em><em> </em><em>the</em><em> </em><em> inflation is high, businesses have to channel</em><em> </em><em>more resources into portfolio management in order to avoid financial losses. This is an inefficient use </em><em>of</em><em> </em><em>productive resources that do not generate wealth to society.</em>
There were multiple ways for workers to respond to low wages and poor working conditions. Some would form into unions and either attempt to fix these in ways such as collective bargaining or going on strike. An example of this would be during the Great Railroad Strike. Eastern railroads had announced a 10% wage cut, which angered workers. As such, they went on strike, and they disrupted rail service, destroyed equipment, and rioted in the streets of cities like Pittsburg.
