The Cost Of Inflation We Do Not Consider
Hey Jessinflationists
In 1971 we decided as a society that we are smarter than any natural forces and we now the master of our destinies as we broke away from the shackles that are the gold standard. We could now create money at will, and this is how we would produce endless economic prosperity.
This wasn't the first humans to debase their currency with the idea of tapping into this apparent unlimited economic growth; however, this time would be different. We're not as barbaric as the Romans, we've got technology and machinery, and therefore it will offset any losses due to inflation.
Since then we've been off to the races, and with all the growth we've had since the 70's we attribute to the glory of unpegged money. However, could this monetary policy have some side effects we're not aware of and not willing to accept?
No such thing as a free lunch
As someone who lives in the part of the world and class structure where I've had to work for every penny, even in a so-called democratic socialist state of South Africa, it's been capitalist all the way. I am not rich enough in assets like land and stocks to benefit from all the asset inflation, I am not connected enough to benefit from government contracts, and I am not poor enough to be the beneficiary of government programs.
As those in the middle, our productivity is taxed and taken away through inflation to pay for the intended socialism at the top and the PR socialism at the bottom.
In my experience as someone who has to trade their time and labour for any value, there is no such thing as a free lunch. You work for what you get, and you make your own luck.
If there's no free lunch, why do we love free stuff?
Governments may issue money through the help of their central banks, but they do not create value. We, as the citizens, assign it the value through our economic output. However, as economies become more financialised, we've put more focus on the method of counting value then the value itself.
This delusion, I mean confidence in money to have value regardless of the underlying factors allows those who create the money to perpetuate what I feel is the biggest con job in human history.
As governments now have unlimited power through the funding of the printing press, their only real obligation is to keep citizens from using alternative forms of accounting, and they can continue to suck wealth from them.
To do this, they came up with a nifty calculation called consumer price inflation, something mainstream economists and mainstream media push on us to keep us in a state of confusion.
CPI lie
Consumer price inflation is how governments manufacture an inflation number, using hedonic adjustments and the idea of a healthy inflation rate they can pool the wool over people's eyes and have them accept just about any amount of theft of their purchasing power.
While the mathematical component and inputs into the basket do help bring down the number, it's not simply good enough to only use financial trickery to keep the inflation myth going.
Poor nutrion
To keep inflation down, governments need to focus on purchases that we need to survive, and food is a primary purchase. If inflation gets out of hand on good people will revolt sooner or later. So what governments mandate is for food to be grown and manufactured as cheap as possible. To achieve this, they've had to monopolise the food distribution channels and reduce the quality of food and create foods that may be void of nutrition but match certain costs.
Ensuring poor nutrition as an option to reduce inflation has had widespread issues such as an increase in obesity, cancer and weakening immune systems.
So effectively the poorest of the poor may not only pay for inflation by buying less, but they pay with their health by and loss of years on their life due to poor nutrition.
Poor health
Poor health has widespread ramifications for production, for strain and the rise in medical costs. Poor health has a knock-on effect on the quality of life; the rise of big pharma extracting more wealth out of you.
Demands for free stuff come at a cost
The inflation we demand from our government is indirectly robbing us of a better quality of life, robbing us of time, robbing us of productivity, robbing us of our health, robbing us of our ability to hold wealth, robbing us of our freedom by making us dependant on government.
I encourage everyone who may think that the government need to provide free this and free that to think twice about the costs they have to pay for it.
Have your say
What do you good people of HIVE think?
So have at it my Jessies! If you don't have something to comment, comment "I am a Jessie."
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