Why do the costs of goods and services go up? Is more effort required to create a particular item like a television from one year to the next? Do chickens require more care to lay eggs this year then they needed last year? What has changed from year to year or decade to decade to cause the price of a home to double, triple or increase by even more?
While an increase in costs can be quantified in the world of tech, can the same be said for things like eggs, cereal, bread? For the most part, the answer is " no'. Eggs laid and consumed this year taste the same as eggs laid and consumed last year and tasted the same as eggs laid and consumed ten years ago. Why the did the cost of eggs go up by over 200 percent? Now, I realize that, when there is an outbreak of something like an avion flu, the costs of eggs will increase, but this is not the reason for all of the inflation seen in the cost of eggs. Oftentimes, something similar occurred with most of the products we buy and it does not align with reality.
Let's ask one question first to consider the possibility that most, if not all of the inflation we see is artificial or not. If inflation NEVER rose above ten percent, why did the cost of goods increase by 50, 70, 100 percent or more? Let's stick with eggs. If inflation is ten percent, a dozen eggs that cost $1.50 should have gone up up to $1.65 not $4.50 or more. Consider the increase or products you bought in the past. Add ten percent to the price of that item and that's all the increase you should have seen. This however was not the case, which should has caused financial reporters or news programs to investigate the disparity between the less than ten percent that was reported as inflation versus the much higher rates of inflation seen in the real world. Given this misalignment, it would appear that inflation is artificial or at least has an artificial component.
As for the underlying reason for inflation, one must consider how inflation comes to be in the first place. Inflation is due to a devaluation of currency. If you have 100 people who each get one dollar, every dollar in that economy is worth one dollar. If you give each person a second dollar for a total of two hundred dollars, the value of each dollar has been cut in half. If you give out another one hundred dollars for a total of three hundred dollars in that economy, the value of every dollar is only one third if the original one hundred dollars. Add another one hundred to the pot and each dollar is only worth one quarter of its original value. One more hundred added, the value drops to one fifth and so on. As long as this extra currency added to the system is distributed evenly to all one hundred people, this devaluation of the currency has no real affect on any of the people. If however, you devalue the currency, let's say by added four hundred dollars, which effectively makes every dollar worth one quarter of its original value, but you give that extra four hundred dollars to one person, the 99 people who still only have one dollar are instantly made poor. That group of 99 people now hold one dollar that is effectively only worth one quarter. At the same time, the value of the every dollar that the lone person who got the four hundred extra dollars is also only worth one quarter of their original value. The difference is however that the lone person now has $401 dollars. In this scenario, a cartoon of eggs that costs one dollar will erase all of the wealth of 99 percent of this population, but would leave the rich guy with $400 dollars in his pocket. And, since the rich guy is the only one who can afford to buy chickens, he's probably getting every dollar the other people spend on eggs.
Eventually, the rich guy ends up with all the money, which is exactly what we have seen and continue to see occurring in the world today. In the United States of America, this all played out right before Americans eyes as it was documented in sources like Forbes 400 richest Americans. In the annual report provided by Forbes magazine, these wealthiest of Americans were making 25 percent of all the income available in the country one year, then 33 percent a few years later. Watching this all unfold, I questioned how long Americans would allow for such inequality to persist. I even brought this question up in my book referenced below. To date, I have not discovered the answer because, the redistribution of wealth persists, as the saying goes
"The rich get richer"
In the end inflation is a simple matter with a simple outcome. When a centralized entity like the Federal Reserve prints more money into existence, it increases inflation by devaluing the currency. The more currency (greater supply) the less it's value. And, when the centralized authority that prints more money gives a disproportionate amount of these extra dollars to a small group of people, the poorer everyone, except for the small group of people (aka, the rich) gets.
For now, consider what you just read. Read it again if you need to, because I realize that the main stream sources of news, especially financial news have made this issue so convoluted that it feels beyond everyone else's comprehension. This is the lie or half truth they need us to continue to believe for them to maintain control. It does NOT however have to be so moving forward. We must open our eyes and minds to end the immoral, unjust, insane and unsustainable way in which we are being ruled. Or we can continue to put our trust in the hands of people who have overseen the decline of this nation and nations around the world.
In 2018, I wrote a book highlighting the problems Humanity would face if more power, wealth, and control was funneled to a small group of elite individuals, groups, or organizations. In my book, I provided solutions (from myself and others) to the inevitable problems and also a means for the Public to analyze, compare, and contrast the words and deeds of those we choose to follow against reality. In my book Solutions: Enough complaining. Let's fix America.
In "Solutions...", I provide the means for readers to disseminate information as provided by their news sources of choice, their elected officials, and any other authority they choose to follow. The book also offers a means to hold their leaders up, not just to a higher standard than is currently accepted but to one that would improve their lives and the lives of those for whom they care.
