For most of human history, people understood how to calculate the price of things in normal circumstances.
That is, you simply determine the amount of time spent by a human being putting labor into the production of a good, and that is the value of the good.
Yes, it really is that simple.
Now, this calculation can become complicated in its inputs, yes. There is how much time is spent in the labor of gaining the skills necessary. How much time is spent building the tools that were needed to make the raw materials into the final good. Depending on how far down the value chain it was, this could be fairly complicated.
Indeed, most people simply went by the current market prices. But they understood that everyone involved needed to make a living. This meant that, every step along the way, the above equation needed to be true. And that more skilled labor is worth more, and that families need to be provided for, etc.
All of which brings us to what inflation is and is not.
The modern economists will tell us one of two things. They’ll tell us it’s either a devaluation of the currency by one means or another (fiat money by printing, hard money by mixing of metals/flooding with true metals). This school will say that the inverse is devlation. Or, alternatively, they’ll just point to prices. Price go up, inflation. Price go down, deflation.
I, being the Barbarian that I am, will smash all of them and say they’re retarded and should go back to the traditional understanding of money. That it is a representation of the value of labor. Let me then give an example of what would be inflationary and deflationary by my definition.
If Atlas the Barbarian is a carpenter by trade and works for 10 copper coins an hour, and can buy an axe for 200 copper coins, his work to axe ratio is 20 hours. Not bad.
If Atlas’s evil King decides to let a bunch of immigrants into the kingdom, cites free trade and the benefits of deflation, Atlas’ aristocracy rub their greedy hands and nod. Atlas, being a carpenter, see’s demand for his work go down. He is only able to command 8 coppers an hour for his work, and is able to buy the same axe (if he can even find the same quality, which is a different kind of argument about inflation) for the same 190, because the blacksmith’s demand has gone down as well. However, the blacksmith is more skilled, and doesn’t go down as much.
Thus, in what our economists would call deflation, Atlas has to work 23.75 hours for the same axe. I call that inflation, as money is representative of labor.
This has been taking place for 60 years in the Empire of the USSA.
To reverse this, they’d have to reverse the trends. They talk about a “wage/price spiral” but it simply means that they have to cut into the record margins that they’re making. Even if they raise prices on some goods, some amount, labor could get ahead. That or they could easily cut CEO pay, or all their HR department that is costing them money. But, the following equation could get Atlas ahead again.
Atlas, after some tariffs and centralized planning (THE HORROR!) from the King and Aristocrats when threatened by Atlas’s new axe and that of his neighbors, finds his wages have risen to 12 coppers. The blacksmith’s wares are also in demand, as the kingdom is now exporting goods, and the axe is now purchased for 210. The labor ratio is now 17.5 for the axe, and even though we are in what the economists would call an inflationary economy, they’re wrong and it’s deflationary. Because, say it with me, money is representative of labor.
Even though he paid more for the axe, Atlas experiences a 12.5% increase in what his labor was able to purchase. He has more time to pursue other things if he works for himself, or he can purchase more with the money his labor earn him if he works for another.
The current system is leaving us Destitute not just in money, but of culture, jobs, spirituality, and of love.
It has destroyed our Polities.
Our Faith.
It has robbed us of everything we hold dear.
And has everyone at each others’ throats, as the kayfabe takes hold of everyone.
Because we are all Atlas, holding up our own individual world dear readers, when there’s no bread to be bought at prices our labor can afford.
And the politicians are praying that no one realizes it, and picks up the axe with the labor they have left in them.
Just realize, if you do, the axe cuts both ways. It can build, and destroy. A gasping, dying Empire is vicious, ruthless, and will lash out. I’d rather build with that axe, myself, and advocate doing so.
But if you can’t see others planning for the violent option at this point…
The inflation has infected more than just your pocket book, but most likely your hopium as well.