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NWMO | You hear a lot of conflicting information on what is "good" and what is "bad" when it comes to inflation. People try to tell you that inflation is a good thing because it's the sign of a "growing" economy and that it increases the value of owned assets. This is true in a sense. It is also true that it hurts those who do not have paid for assets, or any assets at all, because it means that they are not capitalizing on the inflation, but are being hurt by it. If you don't own anything, and are on a salary that is not constantly moving up to match the growing inflation, then you are moving backwards, and I'd imagine that that is most Americans.
Those who have assets and money in the bank will be fine, and those that don't will suffer. As a young farmer, it hurts my profit margin. I don't own land, prices have cooled while inputs have remained higher, living costs are higher, those I hire to do custom work for me have to charge more due to higher costs for them. Interest is higher on operating note, those around me that farm thousands of acres that are established with owned land are keeping rent prices higher.
I'm not complaining, everything I've listed above is how the game works. It's just part of this line of work for those who want to get into it. I'm just saying that so far, inflation has done nothing but hurt my farm and household. | |
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Inflation and recession.
