Bucking the inflation myth

 

 

Can inflation adversely affect buying power?  The increasing cost of products
such as bread, gas, utilities, and stamps seem to illustrate  the decreasing power
of a dollar.

Though it's true that some items have increased in cost, the new
 items  are often bigger, better quality, more durable or contain more features

( see The Simple Dollar  or Your Money or Your Life).

 

The claims of inflation making it difficult to never  expect a better life

and to be content with higher prices/less value is false and dangerous.

Accepting the premise that inflation always eats up income

 easily justifies indebtedness and despair.

 

The fact is many products are a better deal today than 10 years
ago ( TVs, life insurance, and music).

Furthermore  the effects of inflation can be nearly eliminated by buying quality used products or using products up before replacing them.  

I have a desk built in 1986 and a small refrigerator built over 15 years ago.

I don't need to spend money on a new higher price desk when my current one works just fine.

With the increased cost of goods you typically get better value.

But if the new product isn't a better value, then simply hold on to what you have or buy used and thereby buck inflation.

 

 

 

(photo courtesy Michelle Meiklejohn )