Congratulations savers, you just lost 3% on your cash holdings! Don't have savings? Struggling to make it by? Tough luck, the money you do manage to acquire is worth 3% less then a year ago.
Here's a major problem. Inflation destroys the value of our currency. Cheap borrowing costs directly contributes to more lending and increased debt. Since growth in the economy does not keep up to pace with the increase of debt, the printing of new money is the means by which we keep the game going...and inflation becomes our inevitable nemesis.
Here's what we can do to curb inflation:
1. don't live a wild life of 'consumer consumption' based on consumer debt
2. pay off credit cards on time
3. pay off all other debts and live within our means
4. demand government stops insane amounts of spending (less borrowing = less debt = less printing of money = less dilution of currency = increased value of our dollar)
5. Take money from previously consumed items and invest in hard assets of real value
If done, our consumerism apatite won't be as 'fat and marry', but our money will be worth more, and we will have more of it.
This is simply 1 tool to help those struggling to make ends meet...this year, the help would have been to the tune of 3%.
I am passionately concerned with people who lack. I try my best to help others (as I have been helped) to advance and move forward. Because I believe government does a lousy job on something that is not their business, does not mean I am heartless and do not care. It means I care differently then some. Sometimes it's easy to look at a 600 word entry and generalise my points and take what I say out of context (i.e: every single entry I have done on poverty or minimum wage). I look forward to being more clear and concise in my future entries; like all of us, I too am striving to improve.