don’t be afraid of inflation

[NewRanger]

Exactly, inflation has always been in existence and yet there are people doing well in their businesses and living a normal life like inflation doesn't exist in their corner, I have long decided that inflation isn't going to limit me from living a normal life even though it would be tough but the best thing to do is to keep living and surpass every inflation. I don't see anything see about inflation because all it does is to limit us from pushing forward and now we all believe that inflation has the right to define us and how we live our lives in other to survive and even though it is a major challenge but everyone should be used to it already and if we continue to blame inflation we won't be able to succeed in anything we do.

Finding quick solutions is necessary, rather than constantly complaining and blaming inflation for the economic inequality we currently experience. This is quite noticeable, and can be seen in our monthly expenses if we can record them.

Inflation won't be as noticeable if we live in a village because some items aren't essential, especially if we farm and grow staple foods and vegetables. This can help cover monthly expenses, at least for other essential needs, in addition to other basic necessities like electricity and fuel, which are daily purchases and essential bills.

Another solution to make things easier is to find additional income.

[wozzek23]

I might agree with you that inflation is good but we can't deny the fact about increasing prices for goods and commodities. It will not affect individuals having investments in various assets like stocks or bonds but a regular person will be affected by this as they do not have an uprising investment assets but yet they have to spend more for everyday goods and commodities. This will have a negative impact on their finances and they might end up in a worst situation than they are right now.

Inflation can be balanced with an increasing income rate but usually the lower class is not able to tackle this as their income remains stagnant while the expenses keep on rising.

[justdimin]

On the contrary, I think you don't know what the concept and real meaning of inflation and deflation is, not OP. Because basically what OP said is not wrong. Inflation is better than deflation, and it can actually benefit the economy if well controlled and under ideal conditions. Inflation is well controlled and always maintained below 2%, which will stimulate economic growth. But sadly in reality, inflation always gets out of control and is no longer ideal. So now it is becoming the obsession of every country and everyone wants it to disappear.

Inflation is better than deflation that part is true, deflation means there are no buyers at all and companies are in dire trouble to sell so they cut prices down to very small and cause deflation just so they can sell. But who is it bad for? The people or the companies?

Companies would lay off people just because they are not getting income, so everyone would be bankrupt, from companies to unemployed people, this doesn't work for anyone at all. But if we are dealing with a result like this, that means something caused people to be not buying anyways, and as long as you do not fix that, you are not going to fix the issue. Inflation however is simple, you just cut the rates low and then suddenly inflation is gone, it's as simple as that.

[Raflesia]

I just want to straighten out that it is likely that only assets with hedges that are progressing such as bitcoin or gold that we can say for this, the rest I am not too sure especially for altcoins and shitcoins.
Because in fact until now we can see that apart from bitcoin and gold the rest have nothing to be proud of from their progress for the long term so instead of saying altcoins and crypto trash like shitcoin, the focus is only on bitcoin.

Altcoins and shitcoins are not effective hedging solutions because not all of them grow, only a few do and their future is quite uncertain. I agree with you on that. However, I would like to add that stocks, especially tech stocks, are also an extremely good inflation hedge and are not inferior to bitcoin or gold in the future.

If you look at the growth trajectory of stocks like NVDA, TSLA has also increased significantly over the past 5 years and has even outperformed bitcoin over the same period.

In addition to bitcoin and gold, there are many other assets and investments that can be used as inflation hedges.

Because they don't grow and just rely on the momentum that pump and dump schemes always have which makes them sometimes still be seen as a gamble to me as opposed to an investment as a hedge because we are just trying to find to wait for the whales to hit the coin and we get a huge profit with an absurd multiple.

But at the end of the day they're not that much different and when we're talking about hedging and long term investment returns even though the stocks you're talking about are rising but it's not that significant and they're beating bitcoin or gold just based on market capitalization of course.
So even though what you said is right but I think I would only look at gold and bitcoin for now other than that not.

[Jewan420]

1. inflation encourages spending
- people would want to buy products now because they know it will be more expensive in the future
- they know there is no point in holding their money because the purchasing power will only decrease

Salary or income never increases by competing against inflation. So it goes without saying that inflation is never good. I completely disagree with your statements.

Inflation never encourages people to buy, because the price of goods is increasing but your salary is not increasing. Although the salary increases due to the effect of inflation, it is not enough. That is, if inflation increases by 10%, the salary increases by 2%, but that is not always the case.

3. easier to payback debts
- people are more likely to get loans because they know this will be worth less in the future

Are you forgetting that interest rates can increase? Even inflation does not become serious in just a few years so that it is easier for you to repay the loan. In the case of long-term loans, the interest rate eliminates the effect of inflation. So even if the value of the borrowed money decreases due to inflation, it is never easy to repay it due to the lack of salary increase and interest rates.

[minairia3]

Finding quick solutions is necessary, rather than constantly complaining and blaming inflation for the economic inequality we currently experience. This is quite noticeable, and can be seen in our monthly expenses if we can record them.

Inflation won't be as noticeable if we live in a village because some items aren't essential, especially if we farm and grow staple foods and vegetables. This can help cover monthly expenses, at least for other essential needs, in addition to other basic necessities like electricity and fuel, which are daily purchases and essential bills.

Another solution to make things easier is to find additional income.

Inflation has a significant impact and its impact is the same whether you live in an urban or rural area. Because you can reduce costs by growing your own food and raising your own livestock. But rural incomes are very low compared to urban areas and you still have to pay the same amount for other basic needs like electricity and fuel. So it is not correct to say that people living in rural areas will be less affected by inflation.

Increasing income is the best solution to solve the problem of inflation and rising commodity prices, but it is easier said than done. Increasing income is a difficult problem.

[Lida93]

many hear inflation rates rising and immediately jump to the conclusion that it’s bad but what people don’t understand is that inflation can actually be good for a nation. here’s why:

1. inflation encourages spending
- people would want to buy products now because they know it will be more expensive in the future
- they know there is no point in holding their money because the purchasing power will only decrease

Inflation is another way of discouraging savings among the middleclass, and worst is how the rising inflation is gradually eroding the middle class into the lower class causing them more disadvantages as the purchasing power weakened by inflation now makes for a lower and upper class.
So with growing inflation it becomes a process where people has to buy things they don't need today against the future because of fear of price rising. Does this also echo fine with perishable goods? No matter how people try to manage the conditions it only making their yesterday better looking than their future despite how many jobs they do.

2. stocks, crypto, other assets will be rising
- since fiat is falling, people will seek other safer ways to hold their money

I agree about this for those who have a good knowledge on how to invest into these assets. But what about the rest percent of the society whose life circle around the fiat and due to their financial incapacity they can't afford having something left to think of investors all they can afford is for their basic needs.

1. deflation discourages spending
- people wait for prices to fall instead of buying today

what about Japan, they are known for having households that don't spend that much, is it an issue of deflation?

[Roseline492]

Inflation has a significant impact and its impact is the same whether you live in an urban or rural area. Because you can reduce costs by growing your own food and raising your own livestock. But rural incomes are very low compared to urban areas and you still have to pay the same amount for other basic needs like electricity and fuel. So it is not correct to say that people living in rural areas will be less affected by inflation.

Increasing income is the best solution to solve the problem of inflation and rising commodity prices, but it is easier said than done. Increasing income is a difficult problem.

There effects are different, it will be very high on the urban areas and extremely low on the rural areas because of there privilege differences and how easy to get whatever you needed, on the urban areas you cannot plant if you do have the land because the reason of having lands are mostly for building or for other purposes but are not mostly for farming because of how much it cost to acquire it, but on the rural areas lands are common and some could be gifted without paying any amount so when they have occupied the land with plantations and other crops it reduce how much they should be spending during inflation in food items.

[eightdots]

Inflation has a significant impact and its impact is the same whether you live in an urban or rural area. Because you can reduce costs by growing your own food and raising your own livestock. But rural incomes are very low compared to urban areas and you still have to pay the same amount for other basic needs like electricity and fuel. So it is not correct to say that people living in rural areas will be less affected by inflation.

Increasing income is the best solution to solve the problem of inflation and rising commodity prices, but it is easier said than done. Increasing income is a difficult problem.

There effects are different, it will be very high on the urban areas and extremely low on the rural areas because of there privilege differences and how easy to get whatever you needed, on the urban areas you cannot plant if you do have the land because the reason of having lands are mostly for building or for other purposes but are not mostly for farming because of how much it cost to acquire it, but on the rural areas lands are common and some could be gifted without paying any amount so when they have occupied the land with plantations and other crops it reduce how much they should be spending during inflation in food items.

Efforts must be made to curb inflation. The government must continuously work to carry out its efforts in this area in the best possible way. Inflation affects people differently in urban and rural areas, making life difficult for people. Not everyone living in rural areas has the means to grow their own food. Urban residents, especially those affected by inflation, may not have the opportunity to increase their income. Therefore, inflation is the fundamental problem, and everyone must do their part to combat it.

Whether inflation is large or small is important, but both impact people's lives, and any efforts to address this situation must be carried out with great care.

[XOOMBOX]

I might agree with you that inflation is good but we can't deny the fact about increasing prices for goods and commodities. It will not affect individuals having investments in various assets like stocks or bonds but a regular person will be affected by this as they do not have an uprising investment assets but yet they have to spend more for everyday goods and commodities. This will have a negative impact on their finances and they might end up in a worst situation than they are right now.

Inflation can be balanced with an increasing income rate but usually the lower class is not able to tackle this as their income remains stagnant while the expenses keep on rising.

Inflation cannot be said to be a good thing especially when the prices of essential commodities increase but it is important to keep in mind that inflation is a natural part of the economy and in some cases it also helps in increasing production and employment but the problem becomes clear when someone's income remains the same and the prices of everything in the market keep increasing especially for low-income people it is a really big pressure. And it is also true that not everyone is affected equally, if someone has savings or investments then they can keep up with inflation to some extent but for those who do not have these opportunities then it becomes very difficult to manage the additional expenses for them. So instead of seeing inflation as just good or bad income growth, fair wages, and skill development should be given equal importance so that the common people can also adapt to the changes.

[Davidvictorson]

Well, some people do not have any choice in choosing whether to be in an inflation or not. During an inflationary period the people who suffer the most are the low income earners, they cannot even get a loan. They must first think of how to feed and anything else. In addition to this, their income is not even enough. No one would give them a loan because they are “high risk”. The only people who benefit are the wealthy, they can take out a loan during this period because like the OP said, paying back will be smaller than what they took out. There’s no benefit for the low earners.

[348Judah]

There is not way we cant be scared of the effect of inflation when we are operating under a centralized economy system, except if we go decentralized, the main targets of inflation is on the global centralized economy system and this will keep emancipating as long as the government are the ones in charge and controls the running's of the economy for us, that is why we cant amassed from poverty alleviation and the challenges people are facing each day remains unsolved permanently because inflation degrades the value of money, while the process of the economy is not well fit for a decentralized one except we come into crypto for way out.

[Roseline492]

There effects are different, it will be very high on the urban areas and extremely low on the rural areas because of there privilege differences and how easy to get whatever you needed, on the urban areas you cannot plant if you do have the land because the reason of having lands are mostly for building or for other purposes but are not mostly for farming because of how much it cost to acquire it, but on the rural areas lands are common and some could be gifted without paying any amount so when they have occupied the land with plantations and other crops it reduce how much they should be spending during inflation in food items.

Inflation affects people differently in urban and rural areas, making life difficult for people. Not everyone living in rural areas has the means to grow their own food. Urban residents, especially those affected by inflation, may not have the opportunity to increase their income.

Whether inflation is large or small is important, but both impact people's lives, and any efforts to address this situation must be carried out with great care.

Yes is not all in the rural that sees the opportunity of some of there rural people but however is not going to be many as the way urban is going to be, in my country I lived in the city but because of how inflation has push up price of things, the rural areas becomes a big source of purchase from people because the prices are mostly small compare to the cost price on the city, so that's why rural has a way they become a producers which feeding will not be much of there problems but when they need something outside from what they produce then they began to face the power inflation, inflation is not something to plan for but is good to work hard so that there is no face in life you cannot ride on.

[Rabata]

many hear inflation rates rising and immediately jump to the conclusion that it’s bad but what people don’t understand is that inflation can actually be good for a nation. here’s why:

inflation encourages spending
- people would want to buy products now because they know it will be more expensive in the future
- they know there is no point in holding their money because the purchasing power will only decrease

deflation discourages spending
- people wait for prices to fall instead of buying today

If inflation is within the limits, then it is certainly acceptable. We should not think that inflation will not happen. From the point of view of economics, if the money transactions between the people stop, then the economy will collapse. People will continue to buy goods out of fear of inflation, which will keep the wheels of the economy moving. On the other hand, if there is deflation, it must also be within the limits. If excessive deflation occurs, it is also a big problem for the economy. It is almost difficult to think that deflation will occur at the present time. We are constantly seeing only inflation. Once the price of a product increases, the price of that product does not decrease much, which is why we do not think much about deflation.

[r_victory]

When inflation is under control, there's really not much to worry about. The problem arises when it spirals out of control and creates an unsustainable situation where your purchasing power decreases and prices become absurdly high. In my country, even though inflation isn't at an alarming level, I now spend two or three times what I spent four years ago at the supermarket. If this continues, those who already lack resources to support themselves will find themselves in an even worse situation.

[Agbe]

Snip

This is not entirely true. Even if your salary increases when inflation is too high, you won't have any purchasing power. In this case, your quality of life is not increasing even though your income is increasing. The same things you cannot afford when you were earning $1k, you won't be able to afford them when you earn $1500, because the price has increased, thereby making your purchasing power remain the same or even reduce it, depending on how high the inflation level is.

Any inflation that is higher than 2% year is not ideal. Inflation should stay within this rate to make sure the economy is growing, and people are making enough to afford things even when they increase by a few dollars.

For anyone to enjoy inflation in terms of the salary received the salary must be in such a way that even though inflation is bitting hard on the citizens the salary which will be increased as a result of the inflation will very high, this is to reduce the effect of inflation but this is not the case that we are seeing in third world countries because the salary that is increased to mitigating the effects of the inflation is so small that it can do anything to the ordinary workers.