A world without inflation

daveydiesel1

Member
Livestock Farmer
Location
Co antrim
Iv been wondering recently why do we have such a thing as inflation? Peoples wages go up and everythin else goes up and virtually no1 is better off in the long run. Sure theres odd winners and sometimes some get ahead but if you took it over a 10 year average it all works out. What would be wrong with everything having a price and it staying like that
 
Iv been wondering recently why do we have such a thing as inflation? Peoples wages go up and everythin else goes up and virtually no1 is better off in the long run. Sure theres odd winners and sometimes some get ahead but if you took it over a 10 year average it all works out. What would be wrong with everything having a price and it staying like that

I'd say on balance most peoples lives get better every year despite what are considered to be tricky times.

That said that are plenty of drawbacks to lives getting better but that was always the case
 
The decline in the value of money is disheartening i find anyway
Yes bad for pensioners & savers.

Great for borrowers.

Not easy to control & the ratio of values is changing all the time. Food until very recently cheaper than ever in human history due to efficency. Land more expensive road building, housing, industrial construction, pony paddocks etc. driving up the price.
 

som farmer

Member
Livestock Farmer
Location
somerset
It makes it worse when the old farts keep telling us they remember when it was 10p for a pint etc
Which isn’t relevant, the value for money is what is relevant
on that note, roman wheat, at todays value, would be £4,000/t or more.
a rising inflation rate, is brilliant, for guv, or anyone else, with borrowed money, reduces the debt. For most, its a f-ing pain.

But it was bound to follow covid, huge amount of upheaval, from the normal run of things. And inflation is global, nor is there much, other than raise interest rates, that can negate it.
The guv, takes a lot of criticism, for its handling of covid, a shaky start, soon changed to the world leading country in the fight for controlling it. Likewise, till Ukraine, we were forecast to be the worlds fastest recovering country. The money borrowed to fund that, has to be paid back.

I think most of the 1800's were non inflation, and we were the worlds biggest manufacturing country. The thing, is even if they wanted to reduce inflation, there is very little any guv can do.
We are in for a few bumpy years ahead.
 
Depends what you mean by inflation.

Wages inflate, savings inflate, some goods stay the same and other change regularly.

It makes no sense to have a computer costing the same today as it did 10 years ago. But I guess it would work with basic minerals. However, if the use of those minerals over time changes - because people are innovating - say with Lithium batteries. Because the demand for Lithium increases, the prices increases which means more Lithium is sort after, too much and the price falls.

It works IMHO - except when markets manipulate the price.
 

Kiwi Pete

Member
Livestock Farmer
Iv been wondering recently why do we have such a thing as inflation? Peoples wages go up and everythin else goes up and virtually no1 is better off in the long run. Sure theres odd winners and sometimes some get ahead but if you took it over a 10 year average it all works out. What would be wrong with everything having a price and it staying like that
People would see the money-myth for what it actually is, a new paradigm of success would be born, and we'd be so much more difficult to farm.

It's the treadmill that keeps 'life as we know it' rolling, but given that energy is becoming more costly to procure and the global population is 5x what is realistic in the circumstances, then we shall soon see
 
People would see the money-myth for what it actually is, a new paradigm of success would be born, and we'd be so much more difficult to farm.

It's the treadmill that keeps 'life as we know it' rolling, but given that energy is becoming more costly to procure and the global population is 5x what is realistic in the circumstances, then we shall soon see

Necessity is the mother of invention.

There is no reason why we cannot rapidly innovate different energy production systems
 

bluebell

Member
there was a programme on tv, about the building and construction of the empire state building, built in new york, americia during the great depression? What was quite stark in todays world of rapidly prices going up and up? Was that the original budget, cost for the job, it actually came in alot cheaper? Wheres as most large projects, even before this currant crisis, you might a swell ask a child on the street what the cost they think it will be?, channel tunnel, H2 etc?
 

som farmer

Member
Livestock Farmer
Location
somerset
Hitler’s operation Bernhardt was to air drop 130 million forged bank notes on England to devalue the money and cripple the economy, that’s what we have just done for the pandemic!
l wonder what history will say about covid, for certain it will have its own place in history.
much of the methods used to 'control' it, were media driven, leaving guv's with little choice but to follow them, did they work ? Vaccination did, and a vaccine was created in record time.
The death rate from covid, was horrific, so we are told, but even that was hyped up by media, in the UK, anyone with a positive covid test, within 28 days of death, died of covid, even if it was a road accident, heart attack, natural, murder or old age, etc. Rather think those that were howling over that, will remain silent, when challenged with that.

The results of covid, have completely altered the world, it fudged the normal trade routes, so all imported, or exported, goods, in/out of the UK, were affected, brexit didn't help either. The result, the ultra efficient, just in time, movement of goods, ceased, overnight. This then forced industries to start holding 'spare', parts, food or anything, this had to be paid for, up front, at a time when delivery was erratic, prices rose, from exporters, and importers, which is basically inflation, and all the crap, that comes with it.

There's diddly squat guv's can do about it, its a predictable result of trade disruption, its global. The energy crisis, is a direct cause of events, elsewhere, and yet those same media, are howling for the guv, to do 'something', which to media demand, its been forced to do, but with massive borrowing through covid, further borrowing, is scary. Truly scary when it comes to repaying it, with our taxes.

As farmers, we are at the mercy of prices, which are set, elsewhere. What we are seeing, is rapidly rising input costs, and a slower rise in our output price, but output prices are at record levels, and don't seem to stop increasing, whether we need them, which we do, the result is rapidly increasing food inflation, add that to everything else rising in price, its not a pretty outlook. What's the answer ? l doubt there is one, it will have to run its course, simply because its a global phenonium.

economics, which govern our lives, is extremely simple, its supply versus demand, when that is equal, no problem, when it isn't, its problematic. It will rebalance itself, and it will probably take longer, because politicians, have been forced to intervene.
 

BrianV

Member
Mixed Farmer
Location
Dartmoor
Iv been wondering recently why do we have such a thing as inflation? Peoples wages go up and everythin else goes up and virtually no1 is better off in the long run. Sure theres odd winners and sometimes some get ahead but if you took it over a 10 year average it all works out. What would be wrong with everything having a price and it staying like that
Inflation as with all rising prices is simply caused by supply & demand, if you have a constant adequate supply of anything then prices do not alter, once you have more demand than supply then prices will rise, this applies to everything from food to house prices to rents to fuel to everything.
The reverse is also true if you have more supply than demand prices will fall without fail!
 
Last edited:

Hindsight

Member
Location
Lincolnshire
l wonder what history will say about covid, for certain it will have its own place in history.
much of the methods used to 'control' it, were media driven, leaving guv's with little choice but to follow them, did they work ? Vaccination did, and a vaccine was created in record time.
The death rate from covid, was horrific, so we are told, but even that was hyped up by media, in the UK, anyone with a positive covid test, within 28 days of death, died of covid, even if it was a road accident, heart attack, natural, murder or old age, etc. Rather think those that were howling over that, will remain silent, when challenged with that.

The results of covid, have completely altered the world, it fudged the normal trade routes, so all imported, or exported, goods, in/out of the UK, were affected, brexit didn't help either. The result, the ultra efficient, just in time, movement of goods, ceased, overnight. This then forced industries to start holding 'spare', parts, food or anything, this had to be paid for, up front, at a time when delivery was erratic, prices rose, from exporters, and importers, which is basically inflation, and all the crap, that comes with it.

There's diddly squat guv's can do about it, its a predictable result of trade disruption, its global. The energy crisis, is a direct cause of events, elsewhere, and yet those same media, are howling for the guv, to do 'something', which to media demand, its been forced to do, but with massive borrowing through covid, further borrowing, is scary. Truly scary when it comes to repaying it, with our taxes.

As farmers, we are at the mercy of prices, which are set, elsewhere. What we are seeing, is rapidly rising input costs, and a slower rise in our output price, but output prices are at record levels, and don't seem to stop increasing, whether we need them, which we do, the result is rapidly increasing food inflation, add that to everything else rising in price, its not a pretty outlook. What's the answer ? l doubt there is one, it will have to run its course, simply because its a global phenonium.

economics, which govern our lives, is extremely simple, its supply versus demand, when that is equal, no problem, when it isn't, its problematic. It will rebalance itself, and it will probably take longer, because politicians, have been forced to intervene.

Was the death rate horrific? Majority of deaths were in the over 60s and it just brought forward the inevitable by a few years. Younger folk that succumbed generally had co morbidities, so natural selection at work. One of those things really. More will die or be adversely affected by the repercussions than ever died through Covid. Hey ho.
 

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