I have been an entrepreneur my whole working life, and I have always focused on micro-economic effects on my business because for an entrepreneur that’s all that really matters. I don’t understand what is happening on a macro-economic level. None, of it makes any sense to me anymore.
Inflation is the result of the government inflating the monetary supply. Many people miss this important step in inflation. Inflation is in fact, a tax on everything including capital. Inflation is a way the government can consume the wealth of the population without most people even noticing.
This video is a lecture by Mark Thornton of the Mises Institute talking about government intervention and inflation. You might find it interesting. I find the Mises Institute the only sane voice out there. The Mises Institute and their scholars are completely ignored by the mainstream media.
I do not believe the economic information coming out of mainstream media is true. The mainstream media tends to interview Keynesian economists. The government hires and supports the Keynesian world view because it gives the government more power. The government would never support Austrian economics because Austrian economics would take power away from government.
I don’t know if this post will be any use to you. As I said before, I focus on micro-economic effects on my business. I watch government protectorates (crony capitalism) carefully to get a sense of what is really happening. Like most entrepreneurs, I don’t know if I am right. But what I have seen with Canada Post, is the worst inflation of price ever. The price increase is even worst then the 1980s, which was really bad in Canada.
So, big deal. We are being fed a load of baloney. So what can an individual household do? Here are the things I’m thinking about. I’m cutting my costs everywhere I can. I am not hiring people. I am being very careful with my household consumption. I’m saving everything I can even though I am not rewarded for saving and investing. I’m working on my exit plan.
Good luck, figuring it all out. I have no idea how the economy will play out. Just be aware, it can take decades for the government to consume the capital of generations of working people. Here’s an example of how long a commend economy in Russia took “to consume the accumulated capital of centuries of savings and investment by Russians, Ukrainians, Germans, Poles, and others under their control.”