From: Bob Redig



If you are looking for someone or something to blame for higher inflation, it is you! (And me). The buyer (you) always sets the price of any purchase. If you think the price is too high, don’t buy it. If people wouldn’t buy at higher prices, there wouldn’t be any inflation. Just that simple. I know, I know, you need, you need! But did you do anything to reduce gas use by slower driving, less driving, combining trips, etc.? No? You bought at the high price? Then you caused the price to hold and the inflation; so don’t complain. If nobody or fewer consumers bought at the high price, the price would drop. Of course, if the price dropped below the cost of production, the item would no longer be available, as no one will produce without the profit incentive.

So, do your part — buy spuds, not chips, flour, not bread. Use an old rag instead of paper towels. Use water instead of TP. Drive an energy-efficient vehicle instead of your big, gas-slurping pickup or SUV. Or don’t complain.

Actually, inflation probably hurts old retired persons on fixed incomes the most.  And to add insult to injury, the minuscule interest they do get is usually taxed.  Most younger workers’ wages will increase to cover inflation. Fixed dollar amount retirement savings will never regain the lost buying power. 

One bright side is that inflation lowers the national debt because it will be paid back with a set number of “cheaper” dollars with an interest rate that does not even cover inflation. So essentially, the U.S. debt is “free money” at the expense of savers. Among those hurt the most are those “little people” that are loaning their money for essentially a loss. Institutions invest in U.S. government debt for security not gain.