Cheaper Inflation Methods B

Even though high inflation has been a recurring problem for several hundred years, there still aren’t enough solutions across the world for inflation.

Therefore, what are ways to add %s to more specific, less painful methods than the current inflation reducing methods?

Suppose there are up to 100,000 puzzle pieces for solving inflation, and suppose that each time we create a puzzle piece, we have a really high probability of connecting that puzzle piece to the right puzzle pieces.

As we add more puzzle pieces, how do we end up with the 50 best solutions to inflation that are achievable enough?

Please print this page (double sided) to keep as a resource…

Please also make sure to have a look at the other articles in this series, because some large %s of methods are suggested, and some could be really helpful.

So how do you solve inflation? And what are puzzle pieces to help find 50 types of gentler inflation solutions (or 50 %s of gentler inflation solutions)?

• This page covers purchasing-side (versus business-side) solutions and the next page covers business-side solutions.

• It appears that Central Banks raise interest rates for the specific purpose of trying to change people’s behaviour around inflationary products.

• However, if we applied effective methods to get inflation down before Central Bank interest rate rises happened, then worldwide Central Banks would have much less reason to raise interest rates.

  • Therefore, if we knew what people could do on the purchasing-side to lower prices, we could just keep trying %s to persuade different groups to do these- ideally before interest rates increased each time.

  • For example, higher interest rates are trying to achieve less overall spending across society, through the flow-on effects of less spending by mortgage and loan holders (i.e. they spend less on other businesses, who spend less on other businesses, who spend less on other businesses).

  • Therefore, to achieve this faster (instead of after interest rate increases), everyone should be told ahead of time to reduce their overall spending.

  • However, the problem with decreasing overall spending is that while lower overall spending should lower the price of inflationary goods,

  • it will also lower the prices and profits of non-inflationary product businesses and risk recessions.

  • Therefore, more specific purchasing-side solution %s would be really useful, and solutions for how to solve this will be explored further on this page

  • Also, decreased overall spending is also part of the solution, although it is a smaller part of the solution than the more specific purchasing side solutions.

• So what can different groups- and people in general- do to ethically decrease prices?

  • The goal of increasing interest rates is for the purpose of decreasing prices, so what are behaviours that will decrease prices and slow down interest rate increases?

  • We could understand what is happening better, or find win/win alternatives to decrease the average or total amount people buy of inflationary products (which is covered on this page), or increase the supply of inflationary products (which is covered on the next page), we could decrease the cost of components (e.g. transportation costs), or other overall or specific methods, which are explored further on the fourth page.

  • 20 purchasing behaviours would mean we could get specific about everything needed. We could then potentially choose 5-10 priorities and help to influence for them before the next interest rate rise.

  • spenders, businesses that have inflationary products, other groups, before interest rate rises?

• Therefore, what are 10,000 %s for purchasing-side behaviours that will help to lower prices of inflationary goods and services? And how do we get enough of the world to do them quickly enough to be able to minimise/prevent interest rate hikes?

• This is based on the idea that when purchasing demand decreases in comparison to the production supply, wholesalers and retailers need to decrease their prices to be able to sell most of their products. On the other side, when purchasing demand increases in comparison to the supply available, wholesalers and retailers can increase their prices and still sell most of their stock at the higher price.

• Therefore, what are 10,000 %s for purchasing-side behaviours that will help to lower prices of inflationary goods and services? And how do we get enough of the world to do them quickly enough to be able to minimise/prevent interest rate hikes?

• Here are 16 solutions and %s of solutions for decreasing prices before interest rate rises happen:

1 To decrease overall spending, but if a business with an inflationary product needs some help or has good reasons for increasing prices, to consider supporting them- but only if you can afford it.

2 The above is especially true for businesses that have products that are not needs, because they are the first to get affected by overall reductions in spending. But only if you are certain you can afford it.

3 To understand how purchasing-side inflation works… for example, if there is a supply of 1000 product items, and suddenly more and more people want to buy the product, the business might raise prices because all or most of the product will still sell at the higher price. If less people want the product, the business will need to lower their prices to move their stock (they will probably do this bit by bit, e.g. a lower price each month or week, followed by a sale, depending on how much space they have in their stock room). These understandings help to create more effective solutions.

Increasing the supply is a helpful method that is explored in the next article. When %s for this are done in combination with decreasing purchasing demand (either the average quantity of purchases per person or the total number of people who buy the product, for example, by finding alternative products), this will lower prices because the supply will increase in comparison to purchasing demand. Interest rates will keep increasing until prices are reduced, which is problematic for the economy, so ways to decrease inflationary prices are really helpful.

If a business has an inflationary product or service and doesn’t have a specific need for higher profits, or something is inflationary for no specific reason, here are alternatives to interest rate rises:

4 Asking people to not buy more than they need of an inflationary product, unless they have really good reasons to. For example, if someone is wealthy, to ask them to avoid buying more of an inflationary good that they personally have less problems affording. This will help to decrease purchasing demand.

5 To get everyone to search for alternative products to inflationary priced products. This will decrease the purchasing demand of inflationary products and might help other types of businesses.

6 Asking people, if a product is inflationary priced and you don’t need it, please don’t buy it (unless you think the business needs help and you want to, if you can afford it).

7 To find the best ways that people can become way more efficient with the inflationary product. For example, some people can’t find alternatives, so finding the best ways to become more efficient with the inflationary product is a win/win. What are the best ways to become more efficient with inflationary products, while keeping similar comfort levels? How can increasing efficiency with the inflationary product be done?

8 To think about potentially waiting a year or months before you buy something inflationary, if it’s not a need. However, to also need to remember that some products will keep increasing in price, so to figure out if the price is likely to move down in the future through more supply or less purchasing demand.

9 If you can predict how long inflationary prices could last, to think about investing in things that will make them much cheaper. For example, investing in solar panels, solar water heaters, insulation, smart thermostats, low flow fixtures or high efficiency heating pumps will make your energy bills way cheaper medium/long term, and in most cases, completely pay themselves off within a few years or months, depending on the product. In the medium term, they’re real investments, because they start saving you a lot of money. However, this depends on if you have thought it through properly.

10 People are probably excited to get out and about and are spending way more than they usually would… if a price seems overly inflated, to seriously consider buying something else, unless the business really needs it.

11 Ask literally everyone, if there is too much demand for a product or service and the business doesn’t need it, try to avoid buying it or save it for much later.

12 To understand the different ways that high prices through high buying demand work (because this helps solutions):

For example, to think of overpriced prices as reflecting the number of people buying it, the quantity of supply, supply costs, other items.

So, for some items, a lot of people are going for them and there aren’t many of them. Because so many people want them, some retailers price them higher, and the majority still gets sold. Then they price them a little bit lower (if they’re not all sold out already), and the majority still get sold. And they’re still priced e.g. 5% higher than before.

When you buy something that has a high price, you are either pushing the price up higher (unless you think the business needs it or wish to support the store) or keeping it at the inflationary level.

If people buy a smaller average amount of the product, or a smaller quantity of people are willing to buy that product, then retailers won’t be able to sell it and will be forced to lower the price next time. This is achieved by waiting before you buy the product, not buying the inflationary product or finding alternatives.

If you think the business might need some extra sales, could you consider potentially supporting the business? (but only if you can afford it and want to).

If you think the business doesn’t need high sales as much as other businesses, can you buy the product later, buy an alternative product, or hold off from buying the product?

What are the goals that the increasing of interest rates by Central Banks are trying to achieve?

They are trying to decrease the prices of inflationary products.

They do this through higher interest rates and decreasing the amount of spending that loan holders can do.

This has a flow on effect- these people spend less, so the businesses they buy from spend less, so the businesses that they buy from spend less, so the businesses that they buy from spend less.

So if businesses and consumers reduce spending- and specifically reduce spending on inflationary goods and services before interest rate rises happen- this is 50% of how to stop higher interest rates before they happen.

13 For example, some prices are priced highly because there is such high demand for items that businesses can sell to the richest people at a higher price. This leaves out poorer people though.

14 Therefore, ways to persuade businesses to find ways to help poor and middle-income people with prices would be really appreciated by a lot of people. And purchasing demand will cool from people switching to alternatives or holding off from buying.

However, people really need to buy some items- some items are really needed and people can’t reduce the average quantity bought.

15 What are ways to persuade businesses to try to do the right thing with these needed items, especially for poorer people?

However, please take businesses concerns about higher component parts and higher wholesale prices seriously, and believe them. However, some businesses need the higher profits, and some businesses don’t need it as much.

What do you think are purchasing-side behaviours that higher interest rates are trying to influence?

Or more specifically, what are ways to decrease the prices of inflationary products?

16 Another example is lowering spending across society (for the short or medium term), which should help to decrease overall prices.

However- if it goes too long, it risks recession, so you could ask people to spend 20% less overall, with 80% of the focus on spending less on inflationary products.

Therefore, asking for lowered spending across society, but with a special focus on inflationary goods and services.

But how can this be achieved in a win/win way?

Some of the methods above included buying alternatives of inflationary goods and services, avoiding buying high priced items, investing in things like solar panels that will significantly reduce costs later on (and even start making income for you) could really be of help.

However, with solar panels, make sure that you are really, really, really specific with where they go on your roof- some solar panels look good and some don’t. Also, the more solar panels the better, because it is really expensive to add more solar panels to an existing system later on, you are saving the earth from climate change and you will make more money from the solar panels.

You need to do your research and be really, really, really specific about how they will look on your roof though.

Most Important: Part B

Central Banks raise interest rates for the specific reason of trying to change people’s behaviour around inflationary products.

However, if we applied effective methods to get inflation down before Central Bank interest rate rises happened, then worldwide Central Banks would have much less reason to raise interest rates.

So if we knew what different types of people were supposed to do to reduce prices and prevent interest rate rises, we could keep on trying %s to persuade different groups to do these, to get inflation down and to slow down interest rate rises.

But what can different groups- and people in general- need to do?

What do you think are 20 things that spenders, businesses that have inflation, and other groups can do to get prices down get inflation down? And how can we persuade people to do some or all of these before the next interest rate rise?

We could then choose 5 to 10 priority behaviours and help to influence for them before the next interest rate rise.

On the supply side, it is harder to influence end supply and production supply, but %s that can help solve high transportation, high component costs, or low supply can be really useful.

Please have a read of my purchasing demand and production supply side behaviour %s and please add what you think %s could be (and why) too.