Why do prices always seem to go up but never down?Watch
I remember when freddos were 5p. Now they're like a pound
Of course it is inflation plus whatever profit the company wants to make, usually 10% a year which compounds nicely on the order of a human lifetime, unlike monetarist governments' 2% inflation targets which things like public sector and welfare benefits uprating is based on (if we're lucky)
What is the solution for the British people?
As ever, our only strength against the elites is in our numbers. Our generation must reject consumerism.
Instead we must focus ourselves on more earnest, fulfilling, advantageous purposes.
Too much inflation is also bad but governments generally target 2-3%, which is healthy.
Wages do generally go up with inflation (which would entail a zero net gain in purchasing power, which is what actually matters.)
Inflation helps to lubricate the jobs market by allowing a nominal wage reduction i.e. wages go up 3% when inflation is 4% as employees are more likely to accept this than an outright wage reduction.
Wage reductions are necessary during a recession, or unemployment will rise.
Source: what I can remember from my macroeconomics course.
I know but just annoys me when something I bought at a fair price suddenly becomes stupidly overpriced. Wages doesn't exactly rise at the same rate either.
Inflation is much, much better than deflation.
Bear this in mind when you think about the whole world of work,earning money and spending it for you will see that in reality progress isnt really being made by the average individual. They are merely pawns in a modern day slave trade.
Now once upon a time we had a thing called the gold standard. This linked the amount of fake paper money in circulation to something of real value, a finite resource...gold.
So banks had to back up every piece of fake money they issued with real gold.
This caused a big problem for central banks because they couldnt print lots and lots of fake money to pump into the economy.
Gold was so important to the economy that after the 1929 great depression in the US, the US Government made it all but illegal for US citizens to have gold in their possession and passed a law requiring individuals to deliver their gold over to the state.
Of course Governments wanted to have control of the money supply and so gradually, corrupt countries got together and decided to abandon the gold standard. This allowed the production of fake money at will.
We have seen it happen since the slump of 2008 when Governments introduced the corrupt practice of what is laughingly called Quantative easing.
Of course the effects of inflation in the economy are cumulative.
Take for example the price of petrol.
There are people alive today who can still remember a UK gallon of petrol costing around 60 pence. Now its around £5.90 a gallon.
How did that happen?
So for us modern day slaves what lessons are there to learn?
Well the first one is that the progress you think you are making is being made against all odds.
You get your monthly pay
It has already had tax deducted.
You go to spend it, you get taxed again at 20% VAT
If you dont spend it, you get robbed by the back door as inflation erodes the buying power of your money..
Whats the answer?
The ideal answer is not to work, let the state support you and earn money cash in hand.
As you get older, build up more and more managed debt then die and leave it all behind.