Inflation sucks! A microeconomics perspective.
 

I am currently buying supplies for my little small engine shop (spark plugs, pull rope, air filters, etc) and I am finding that prices have jumped at least 25% from last year! And I buy in bulk already! :eek::mad:

Not to mention gasoline prices have skyrocketed.

I am going to have to raise prices again this year.

This is proof that inflation really sucks for people on a fixed income.

Indeed it does. I have about the same income I did this time four years ago. Then I was doing ok. Now I'm not.

Thank the bearded counterfeiter for it. I'd love to see Paul win just so he'd go fascist on the Fed.

It is unfortunate that the financial affairs in north america at government levels have not been run properly and that inflation is going to be prevelant for quite some years ahead as a direct result.. I can see no alternative to this. We have to in the final anylasis to pay for this as a population. There still is no free lunch.

What is even worse is the chances of a non defict driven type of government coming to power is highly unlikely. So the rate of inflation will increase over time. The old laws of supply and demand have themselves been manipulated around quite successfully in my opinion. I see more monopolies than ever before present currently and growing.

I think what may be somewhat new is there is not the likelyhood of earnings rising in any semblance of a lockstep fashion this time. Usually for example when automotive costs rise our paid milage rate is increased to compensate.

Instead we are hearing the budgets have to be cut instead. I do not grocery shop very often myself. Yet when I do the prices are obviously escallating. Along with insurance and propety taxes on an every year fairly stiff basis currently.

Personally I think the mess in that area is just stil on the threshhold of getting rolling. It is about the only assist I can visualise to increase property values again. Of course it will not really represent a return to old values but will fool many in my opinion.

The standard of living has to fall in north america to what is possible to sustain as well. If the effort to resist it is too prolonged things will get very serious. Inflation can accomplish this great leveling to come quite well over time. Only the rate of increase is somewhat managable at this time. At some point even that will not be with todays policies..

Well, unless you work for the government!!

I work for myself and don't get raises. All I get is less work because of this lousy economy... :(

I'm in the same boat my man. :(

I don't know what self employed business you are in but have you considered raising your rates?

I always thought it a positive thing when you can raise your rates a certain percentage and lose a much lesser percentage in clients.

Assumptions about the economy and misinformation about the economy are hard to get past. The economy is working exactly the way it is intended. You can tell because the rich are getting richer and the poor are getting poorer.

If you are referring to me, I have a Printing and Sign shop. I have raised my rates and some of my customers are getting grumpy.

If you have a business, at least you have the option of raising your prices. My salary has been flat and will remain so. I have a long commute and despite driving a crappy VW diesel there will come a point when it will be cheaper to retire than drive.

Back in the '80s when things in the construction support arena were getting bad, and inflation was becoming serious, the company I worked for RAISED their rates. They sold quality and decided not to try and sell low cost. If you have high quality and provide great service to your customers, raising your rates can be done. The clients you loose are most likely to be the marginal ones, anyway.
Your situation may be different.

x2

I always get a kick out of the term bearded counterfeiter because that is exactly what is going on - printing money that has nothing to back it up.

Did Bernanke invent unbacked currency? I'm thinking he didn't.

I don't know who invented it but he is the individual that is currently in the hot seat keeping it going.

Yep, the Carter years all over again, but the end of the game will be much different.