Dearest readers, inflation is no joke and while not everyone I know has reacted to it yet, everyone sure is talking about it. I went to a few stores this weekend such as Homesense and was shocked at the price increase of furniture and other things versus just before the pandemic. It is truly beyond belief. Very high inflation- whatever the cause at any given time- is something that most people generally react to slowly because it is an invisible war on our way of life. However, once it becomes noticeable, something happens. What is the thing that happens though? For that, I tried talking to friends who migrated to Canada and either personally experienced prolonged high inflation in their countries of origin, or their parents did. I would like to share some key takeaways from those stories because it is not just people's actions that change, but their mindset does as well and for the long term; it is the good old fool me once...
Now, imagine a high inflation in a country and without credit cards at the time of that inflation. What would we do in such a case? People quickly begin to barter products and services, reuse things items we now consider disposable, and become DIY types. I heard stories from a friend how her parents still rinse out and keep every single piece of plastic packaging from the supermarket groceries such as bottles, tubs with lids etc. To this day, her mom actually reuses every single piece of aluminum foil used when baking or roasting food- as long as that piece of foil is still clean or can be cleaned. Old clothes that were too bad to wear or even give away would be converted into mopping rags. Everything that could be repaired or patched up was repaired and patched up. Cooking was mandatory, so was brown bagging. The diet quickly became moderate to high carb and high fat; meat based protein (fresh unprocessed meat) was not on the menu most days of the week because it was often replaced by cheap deli meats, sausages, canned meat and the like. Most fine dining as well as dining out places in general would go out of business. As for takeout, apparently places like burger joints, coffee shops and bakeries would thrive. Why? It is because they typically offer a high caloric value for the price; also, a burger can have a higher fat content and some cheap soy protein mixed in so you can push your profit margins up at a lower price to the consumer... I heard stories from another friend that, when they were in high school during high inflation in their country, they would see some kids who did not have money for anything better and were super hungry just go to a bakery and buy a loaf of bread and a smaller carton of yogurt or milk and go to town on it.
One common thread in these and many other stories I heard is that an extended period of time living under high inflation and modifying your life accordingly causes the vast majority of people to not return to the way of thinking, acting and spending from before the high inflation started. In the words of Rick from the Walking Dead, "This is how we live now." Yep, the meme becomes a reality. People realize that they need to empower themselves, take back control over many aspects of their lives away from many businesses out there. They no longer see the value of outsourcing even one single thing that they can do at home. So, in such a world, businesses that fulfill people's core needs typically survive, as well as businesses that provide products and services that empower the individual and support their DIY, cost-effective efforts.
One thing that all the people who shared stories with me admitted was a major, major revelation that gave me hope for our situation here in Canada and south of us in USA. All of them said that the reason they think high inflation hit their countries worse than it could ever hit North America today is that we are a consumer society that currently has so much stuff at all price levels, so many supplies and tools to do things yourself and save money versus having a business do it. We have cheap cordless drills and saws, building materials, all sorts of efficient appliances. Hey, an Instant Pot can cook everything including steam bake a cake so you do not need to use your stove or oven that use up more power and drive up your monthly bill. You can build a new computer desk on the cheap that will be sturdier than a desk twice the price. Did you know you can put your sneakers in the laundry and make them newer and fresher? Until recently, I did not. Best of all, unlike cases of high inflation from the past, we are blessed, and I mean truly blessed with high speed access to a world of knowledge online so we can learn how to fight the effects of high inflation, each in our own way based on our different talents and abilities.
The most important thing, after looking at all of this, is to hear the stories from around the world, learn the lessons of the past, but also realize that we are in a different time and a different place and that maybe, just maybe, we can delay streaming our favorite doomer playlists from YouTube for a little while longer.
Now, imagine a high inflation in a country and without credit cards at the time of that inflation. What would we do in such a case? People quickly begin to barter products and services, reuse things items we now consider disposable, and become DIY types. I heard stories from a friend how her parents still rinse out and keep every single piece of plastic packaging from the supermarket groceries such as bottles, tubs with lids etc. To this day, her mom actually reuses every single piece of aluminum foil used when baking or roasting food- as long as that piece of foil is still clean or can be cleaned. Old clothes that were too bad to wear or even give away would be converted into mopping rags. Everything that could be repaired or patched up was repaired and patched up. Cooking was mandatory, so was brown bagging. The diet quickly became moderate to high carb and high fat; meat based protein (fresh unprocessed meat) was not on the menu most days of the week because it was often replaced by cheap deli meats, sausages, canned meat and the like. Most fine dining as well as dining out places in general would go out of business. As for takeout, apparently places like burger joints, coffee shops and bakeries would thrive. Why? It is because they typically offer a high caloric value for the price; also, a burger can have a higher fat content and some cheap soy protein mixed in so you can push your profit margins up at a lower price to the consumer... I heard stories from another friend that, when they were in high school during high inflation in their country, they would see some kids who did not have money for anything better and were super hungry just go to a bakery and buy a loaf of bread and a smaller carton of yogurt or milk and go to town on it.
One common thread in these and many other stories I heard is that an extended period of time living under high inflation and modifying your life accordingly causes the vast majority of people to not return to the way of thinking, acting and spending from before the high inflation started. In the words of Rick from the Walking Dead, "This is how we live now." Yep, the meme becomes a reality. People realize that they need to empower themselves, take back control over many aspects of their lives away from many businesses out there. They no longer see the value of outsourcing even one single thing that they can do at home. So, in such a world, businesses that fulfill people's core needs typically survive, as well as businesses that provide products and services that empower the individual and support their DIY, cost-effective efforts.
One thing that all the people who shared stories with me admitted was a major, major revelation that gave me hope for our situation here in Canada and south of us in USA. All of them said that the reason they think high inflation hit their countries worse than it could ever hit North America today is that we are a consumer society that currently has so much stuff at all price levels, so many supplies and tools to do things yourself and save money versus having a business do it. We have cheap cordless drills and saws, building materials, all sorts of efficient appliances. Hey, an Instant Pot can cook everything including steam bake a cake so you do not need to use your stove or oven that use up more power and drive up your monthly bill. You can build a new computer desk on the cheap that will be sturdier than a desk twice the price. Did you know you can put your sneakers in the laundry and make them newer and fresher? Until recently, I did not. Best of all, unlike cases of high inflation from the past, we are blessed, and I mean truly blessed with high speed access to a world of knowledge online so we can learn how to fight the effects of high inflation, each in our own way based on our different talents and abilities.
The most important thing, after looking at all of this, is to hear the stories from around the world, learn the lessons of the past, but also realize that we are in a different time and a different place and that maybe, just maybe, we can delay streaming our favorite doomer playlists from YouTube for a little while longer.