Deflation?

Well there are two things that have declined in price recently. Houses and Gasoline. People are asking why gas has declined, and many consider it a plot by the oil companies. They were all messing with us by raising prices. Well, consumers have significantly reduced their use. Not only are people driving less, but companies are producing fewer products. The products we use that use petroleum in the manufacturing process are too numerous to list. Everything is in recession and yes, spending is being slashed by almost everyone. Perhaps we’ll see now who the truly rich are. Even the billionaires are talking about costs and how much money their friends have lost.

Deflation will enable us to continue to buy products that we need, I can only hope. I read an article recently that the cost of healthcare is what is rising while the companies who provide care for their employees can not risk passing on the cost to their customers through price increases. The reason their costs went up? They added a few older/mature employees to the company and it adjusted their basis. This is scary because it will begin to make mature, experienced people unemployable. Not only will we deny them health care, and employment, we will move them from their homes by way of property taxes and tell them they must live off a social security paycheck that won’t even cover a rental unit. It’s a disgusting disregard for our elderly and a twisted social message.

We need, as a society, to change our culture. I don’t think everyone working for the government is the answer. Reworking the way companies are structured and how they do business is where it should start. Insurance companies are a major influence on the cost of things in this country. It is misleading to look at the cost of health care as the problem. It is the middle men, the insurance companies, the unions, and other such entities that are undermining the flow of money. This affects so many people in our country.

You can say spending is out, but the cost of living is a true cost. Shall we destroy the basis of this country by creating an environment where creativity is untenable? Perhaps people should pay more attention and rebel against the idea that we are a throw-away society? Perhaps there are better ways to recycle? I recently had a conversation with a man who started a company with the idea of making biodegradable plastic bottles. They would biodegrade in 27 days and were made from corn products. I generally do not agree with using our food for making garbage. I suggested that we use glass vs plastic and have the companies who provide the products to pick up their glass back at the store and re-use it. He and his wife told me there was no way people would do that because we’re a throw-away society. I pointed out that this was what needed to change and that he was a capitalist just like the other plastics companies. That did not go over well, but I stick by my point. The attitude needs to shift.

There will need to be an answer to the question of how to adjust to bills and obligations where the value of the obligation was based on an inflated value. That is where the bail-out on the part of consumers comes in. The government bailout or TARP is the worst thing the government could do. It is subjective and not fair and it has undermined the over all economic market/environment. It screws shareholders and tax payers simultaneously. And reflects the good-ole-boy Washington attitude. This will have long term consequences to the country.