My 18 year old son asked me this question yesterday. We have had several lessons in economics over the last week or so. Truly this is the essence of homeschooling. My 18 year old, who graduated earlier this year, may not realize that he placed himself back in the classroom by asking that question.
I answered the question and then today I find a headline: All That Money You've Lost_Where Did It Go?
I am happy to report that as the teacher I provided a pretty decent explanation.
For those of you who may be wondering the same thing this article provides a good, easily understood, explanation.
Daniel, read this!