When McDonalds introduced a hamburger in l968 that was over three times the price of their basic $.15 burger, everyone thought that the Big Mac would be too expensive to catch on. Today, at $2.24 it’s a pretty good deal, especially compared to “nickel candy bars” and “Five and Dime Store” items.
Inflation is a price escalator that is here to stay. Government printing of the M1 money supply in excess of net GDP increase is one cause of it. Consumer excess demand is another. Both excesses dilute purchasing power rather than add value. Prices, therefore, go up when reflected in (deflated) dollars.
Comparison shopping is the best consumer practice not only for budget stretching, but to promote competition. Focusing on basic necessities and home production also keep us on the lowest cost footing. At 4% average annual inflation the price of every thing will double every 18 years. If you are only 18 now, you’ll have to be a millionaire to retire and afford Big Macs, candy bars, and Family Dollar.
For more information contact (your emergency preparedness specialist).
CATCH THE VISION, GET FACTS, DEVELOP SKILLS AND BE PREPARED.