I’m innumerate more often than I care to admit. BUT… I was spouting off the effects of inflation to someone who wasn’t buying it, pun intended. 

(Generally speaking, for those keyboard correctionists out there. If you’re looking for logic, we broke that door hinge again, possibly forever. If you’re looking for impeccable writing or ironclad mathematics, ask your doctor if Givafocken is right for you.) 

If I net $40,000 this year and the inflation rate stays at 2.7%, that means I will “lose” $1,080 in buying power compared to a year ago. Without a change in income or spending, $1,080 will vanish from my wallet. Sure, it will be the same of dollars, but WHAT I can buy with those dollars will decrease by 2.7%. The percentage sounds small, whereas the dollar amount tends to raise eyebrows. 

Much like buying things is harder when you calculate how many minutes, hours, or days you have to work to buy it. Especially if your boss is a micromanager, a dude named Steve or Kevin, or says BS like, “you need to circle back and touch base after you drill down and leverage your blue sky thinking.” You’re sacrificing your life segmented into minutes to buy every item you choose to purchase. 

That’s before the additional tariff nonsense, which is a tax regardless of how it is defined. The next effect is that higher costs will be passed to you, regardless of whether it is small or large. I assume you’ve noticed that highly profitable corporations tend to love their billions of dollars. They are the modern day dragons that we feared when we were children. They are resting on a reprehensible amount of wealth that should be taxed at a rate comparable to a couple of generations ago. But we’re stuck worrying about Karen maybe getting a few too many dollars that she has to stretch further than a Dollar Store condom. 

Conclusion: you’re losing a lot more money than you believe you are. Percentages are misleading because we don’t connect the concept of inflation to disappearing purchasing power. 

PS Rich people take a lot longer to feel the effects of economic factors because they do not need to spend all their money once earned, whereas we poor people are spending all of our money in an attempt to avoid a free month’s stay in the tent out back of our brother-in-law’s garage, or to avoid buying canned goods with pictures of animals on them. 

Although I make jokes in the telling of my point, I remain cautiously cynical about people who think economics is simple, straighforward, or honest. It’s like expecting your drunk, cheating husband to tell you why he has a pair of panties stuck in the glove box. You’re going to hear a mountain of nonsense. By the end of their excuses, they will have launched a campaign for the US Senate. 

Economics is the lie we tell ourselves that we can comprehend a global financial market with a million moving parts, while almost none of the variables are within our control or comprehension. 

This concludes my wildly strange TED talk. Please sign the guest register on your way out. 

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