What to Do When – Not If – Inflation Gets Out of Hand
By Jeff Clark, Casey Research
Tuesday, 4 September 2012
The cheek of it! They raised the price of my favorite ice cream.
Actually, they didn’t increase the price; they reduced the container size.
I can now only get three servings for the same amount of money that used to give me four, so I’m buying ice cream more often.
Raising prices is one thing. I understand raw-ingredient price rises will be passed on.
But underhandedly reducing the amount they give you… that’s another thing entirely. It just doesn’t feel… honest.
You’ve noticed, I’m sure, how much gasoline is going up.
Food costs too are edging up.
My kids’ college expenses, up.
Car prices, insurance premiums, household items – a list of necessities I can’t go without. Regardless of one’s income level or how tough life might get at times, one has to keep spending money on the basics. (This includes ice cream for only some people.)
According to the government, we’re supposedly in a low-inflation environment. What happens if price inflation really takes off, reaching high levels – or worse, spirals out of control?
That’s not a rhetorical question. Have you considered how you’ll deal with rising costs? Are you sure your future income will even keep up with rising inflation?
Be honest: will you have enough savings to rely on? What’s your plan?