Politics, Moderate

/

Politics

Beating Inflation Is Laughable

Tom Purcell on

In these inflationary times it's not easy to laugh as you watch the value of your hard-earned savings being destroyed.

But I chuckled out loud when I read some of the tips offered by Bloomberg News to beat inflation, which is at its highest point in more than 40 years.

Since Americans have enjoyed low inflation and stable consumer prices for a long time, Bloomberg explains, Americans are “a little rusty on basic inflationary-era tactics.”

Bloomberg turned to the long-tortured people of Argentina for guidance, as they have become experts at navigating hyperinflation rates as high as 50 percent in a typical year.

The tips the Argentines offer are the polar opposite of everything my Depression-era parents taught my sisters and me about managing our money — nutty tips that suddenly make sense in a nutty world.

Here’s the first one: spend your paycheck immediately.

 

Why put money in the bank where its purchasing power will decline in value every day, when you can buy a new refrigerator, sofa or some other big-ticket item that will cost more a month from now?

In these goofy times, the sooner you buy it, the less you will pay for it.

Another tip: borrow lots of money.

If you can borrow a million today at a 3 percent annual rate and the inflation rate continues at 7 percent, you will enjoy a 4 percent gain.

...continued

swipe to next page

Copyright 2022 Tom Purcell, All Rights Reserved. Credit: Cagle.com

 

 

Comics

Dave Whamond Peter Kuper Bart van Leeuwen Clay Bennett Bob Gorrell David Horsey