Inflation Today

Unless you’ve been living under a rock, it’s easy to see how inflation is affecting all of us. A friend of mine in California texted me a picture of paying nearly $7 dollars a gallon in gas. He was so disgruntled that he filled it up to $100 and left. Psychologically, he just couldn’t put more in.

The nexus of history and economics is a sweet spot for me. I love thinking and reading about economic issues throughout history. Doesn’t make me an expert by any stretch but may make me a little more informed. What I do know is that inflation hasn’t been an issue for most of my lifetime. It’s not since the late 1970s and early 1980s that we, as a country, experienced true inflationary pressures. And consider how many people either weren’t alive at the time or were still young they don’t remember the challenges. I just barely remember anything related to that timeframe. But I do remember my parents being concerned about buying the house we grew up in and paying 13+% for the mortgage.

My concern with the current inflationary times, in addition to those who can least afford the challenge being affected the most, is that we have two or 2 1/2 generations of people who have never dealt with this issue. And in my humble thought process, they are woefully prepared for some of the challenges to come. Frankly, I’m not sure any of us is all that prepared. But inflation is the one economic issue that can destroy an economy, a business, employment, and society more quickly than almost any other monetary factor. What you have today may not be enough for what you need in the future.

I was under 10 years of age when inflation raged in the United States. I barely remember it and certainly have no knowledge to handle it. But we’re making decisions based on it. I hope others are planning to be better fixed to deal with upcoming challenges that we haven’t dealt with in four decades.