Wednesday, April 4, 2012

Steve's barking at it's not in flation but

If you receive most of your money through wages and your discretionary  income is extremely low  you receive a cut in pay weather it's do to less hours or you pay has been cut and the price of goods and services stay the same, while it's technically not inflation, but for those who income has been cut it's the same effect. The price of your living space has gone up in relation to your income. The price of the clothes that you ware has gone up in relation to your income.. Food is the same.
Unfortunately this abstract idea isn't quite true for everybody. There are those who have a larger discretionary income and they can absorb a greater reduction in income and therefore it's not like inflation for them.
To my knowledge economist have no word for this inflation like problem for those who have taken a hit on their income and necessary buying prices stay the same.

For this blog I have no statistics, no pie charts, not even a line graft. All this particular blog is stating the abstract idea that there are people who take a cut in pay and to them it's the same as having non discretionary inflation. even if prices don't go up.

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