Cheaper Inflation Methods C
Even though high inflation has been a recurring problem for several hundred years, there really 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 parts.
As we add more puzzle pieces, how do we create 50 alternative solutions to inflation that are achievable enough? Please make sure to read the other articles in this series, because some large %s of methods are suggested and some could be really effective. If relevant to you, please also print this page (double sided) and keep as a resource.
So what are perspectives to think about inflation that can help to create %s of the 50 solutions?
How do we solve inflation?
In the previous article we looked at purchasing-side behaviours that Central Banks were trying to change by increasing interest rates, and how the main goal of this was to decrease the prices of inflationary products.
If we encouraged price decreasing behaviours before interest rates increased, this will help greatly with stopping or slowing both interest rate increases and inflation.
We could also figure out how long those behaviours should go for (e.g. until inflationary product prices stabilised).
As well as purchasing side behaviours, a large part of lowering inflationary prices is supply side. Therefore, what %s can help to lower prices by increasing supply of an inflationary product? How does the world quickly create a total of 100,000 %s for increasing supply of inflationary products? Please note, more solutions are included in Cheaper Inflation Methods D
To slow down and even reverse inflation, it would be really helpful if the world created 100,000 good enough %s to increase the supply of inflationary goods (which can include improvements on previous methods and ways to make component parts cheaper). However, for energy prices, this also needs to be done together with the 2025 climate change goals, because climate change disasters increased 5x with the last 1.15 degrees (e.g. replacing the same amount of non-renewable electricity and not increasing it- instead, focusing on building renewables).
As well as purchasing side behaviour, a large part of lowering inflationary prices is supply side. Percentages for understanding how supply side works could help with %s for solving this:
Supply side behaviour means ways to increase the product with inflation’s total supply.
For example, increasing inflationary product supply could be done by methods like:
how to increase the financial benefits and incentives for increasing production of the inflationary product; however, this needs to be done in a win/win way for businesses
how to increase the non-financial benefits and incentives for increasing production of the inflationary product; however, this needs to be done in a win/win way for businesses
how to get businesses that are specialised in this inflationary product to increase the average quantity of the inflationary product (in a win/win way for businesses)
how to get businesses that used to produce or sell this product to start producing this product again
how to get businesses that produce a mix of products that include the inflationary product to increase their production of the inflationary product (if it’s a win/win for businesses) while keeping production of their other products steady
how to get businesses to produce a lower amount of a current type of product and to produce way more of the inflationary product (that they already have experience producing)- if it won’t be problematic producing less of the other product
how to get businesses enough reason to change field and start producing more of the inflationary product (if it’s a win/win for businesses)/ or through businesses in other areas to start producing in this area
how to increase the effectiveness of the inflationary product’s production to increase the number of products that can be produced by current businesses.
how to increase the technological methods that increase the number of products that can be produced by current businesses.
how to decrease the price of component parts to produce the inflationary products
how to get new businesses to start up in inflationary product areas, if they’re somewhat close to doing this- if it’s also a win/win for the business
how to get other types of new businesses to start up in inflationary product areas- if it’s also a win/win for the business
So, “Supply Side” solutions mean increasing the overall quantity of an inflationary product that are being produced and sold.
For example, it could be that purchasing demand is 1000 units, wholesaler supply is 1000 units, and for 1000=1000, the price is $100.00
If business supply were to reduce to 800 units, in comparison to purchasing demand of 1000 units, wholesalers and retailers would find that they could increase prices and 100% of the inflationary product would still be sold at the higher price, because they were bought by the 800 people who wanted them most.
However, if business supply was 1000 units and purchasing demand was 800 units, businesses would need to lower their prices to be able to sell all 1000 units and create enough space in their storage rooms for new products.
So if supply (how much wholesale businesses are producing, in comparison to how much people want to purchase) is lower, this tends to push prices up.
And if supply (how much wholesale businesses are producing, in comparison to how much people want to purchase) is increased, this tends to push prices down.
This might be through more businesses producing higher average amounts of the inflationary product, or current businesses switching to the inflationary product area temporarily. However, this needs to be a longer term win/win for businesses that produce this too.
This could also be anything between the production of the inflationary product and the retailer sale of the inflationary product- how to improve stuck areas along things like buying components, wholesalers, storage, transportation, retailers, could also be included for percentages to increase the supply of inflationary products.
So supply side solutions are ways to increase the overall quantity of products that are being produced (like the methods mentioned at the start of the previous section), which tends to lower prices.
At the same time, if people are buying and buying and buying (e.g. everyone is out and about and in a mood for constant buying), businesses can raise their prices and know they will move all their stock.
So purchasing side behaviour for switching purchasing demand for inflationary products to other products is needed too.
However, reduced/increased supply is still a huge factor. You could think of it like an auction- when supply is low, buyers competing for the same product buy it first, at the higher price.
So a total of 10,000 good enough %s to increase total supply would be really helpful for lowering prices, and the previous page and next page shows a large number of %s for lowering prices through purchasing side and other solutions.
So how do you increase supply of inflationary products (including components of them, like shipping transportation)
This could be through the current number of businesses increasing (to more businesses producing the product… if it’s a win/win)
Or it could be existing businesses moving into the inflationary products area, creating more supply
Or it could the average quantity across businesses increasing
It could be making it more attractive for other businesses to increase the supply in the area
It could be increasing the financial and other benefits for producing that product in comparison to alternative products
It could be making sure all the major component costs are thought about and finding ways to decrease their demand, increase their supply, or any other potential methods
If component parts are made cheaper, this means its profitability could increase, attracting more businesses
It could be technological changes that increase the number of products produced to increase supply
It could be asking governments to analyze inflationary products or component parts like shipping transportation and searching for ways to improve them
It could be asking governments to analyze inflationary products or component parts like shipping transportation and telling people the problems so that people can find ways to improve them
It could be increasing the total amount produced by businesses, or it could be done through improving challenges among wholesalers, transport, retailers
It could be increasing the number of suppliers
It could be increasing the quantity that suppliers produce
It could be switching demand to alternatives of inflationary products, so that purchasing demand equals supply?
However, production supply is also a really important part of this, so 10,000 good enough %s to increase supply of inflationary goods would be really helpful.
Another part of this is component costs/ making sure all the major component costs are thought about
If component costs are higher, businesses might wish to keep their profit margin and pass on these costs to the consumer.
Therefore, what are %s to decrease component costs?
What could the 5 most important component costs be and what are %s to help reduce their prices?
This could be through lower purchasing demand for these, higher supply for these, or the other methods in these articles.
If we knew what the 5 most important component costs across all industries were, we could focus on ways to make these more affordable by a number of different methods.
If there were government or industry reviews into the most important component costs, these reviews might find potential solutions, or alternatively, the public might become aware of why they are stuck and come up with %s to help solve them.
Please have a read all the way down to the bottom of the next article Cheaper Inflation Methods D, to find ways to lower prices.
What are other perspectives to help the creation of more %s of potential price decreasing solutions?
If there is low supply of something, retailers start by pricing items higher, and they still sell at the higher price to the people who can afford them.
What they can’t sell, they try at the next price down, and people who can afford them or want them most pay more. So when there is a low supply, average prices can cost more and there is oversupply, prices cost less (like during sales).
How to increase the supply of inflationary components of goods and services (e.g. higher priced shipping prices)
This involves increasing worldwide supply, or finding ways to help expensive component parts (e.g. higher shipping prices) become cheaper.
When component parts are more expensive (from low supply, high demand, higher component parts, or other reasons), some businesses pass them on, so their business doesn’t shrink. Some businesses need to, other businesses don’t.
Interest rates are trying to get people to spend less- however, this is meant to get people to specifically spend less on inflationary goods and services. If there is a somewhat oversupply of unbought products, businesses will choose to lower prices.
So an alternative is that if people lower spending overall, spend about a similar amount on non-inflationary goods and services, although a little bit less, but, as a society, spend less on inflationary goods and services (how do they do this? Use alternative goods and services, not buying something, investments like solar panels, waiting until you buy something, how else)
However, production supply is also a really important part of this, so 10,000 good enough %s to increase supply of inflationary goods, including of important component costs, would be really helpful.
How do higher component costs affect inflation? To keep businesses the same size, some businesses add the higher component costs to the price. So ways to reduce component costs is a method, whether by finding alternative components or by increasing supply
For example, shipping transportation is a large cost for many goods and services and there is a shortage of shipping containers and shipping boats- what can the world do to increase supply of these?
The cost of shipping went up, because of a huge surge in the demand for container transport.
On the supply side, box port congestion and poor container port performance are reducing the supply of shipping.
Could governments do something to help with the above reasons? This would help the whole economy be much more successful.
What are %s to help solve low supply and high demand?
So what are 10,000 %s that the world could think of to increase the supply of priority inflationary products.
We already know that some of the needed behaviours are for practical reasons that need to be solved:
What are ways to increase supply of inflationary products?
What are ways to make component parts become cheaper?
Prices are increasing because component prices are high, so businesses want to pass on costs. So what are ways to increase the supply of these?
High demand from consumers raising prices higher than usual
Because they know they’ll sell it all even at the higher price
There’s high demand for specific goods and services
How do you switch to alternatives
People are glad to be out and about and are spending more- this would be to pay more if you think the business needs it and you can afford it, but if the business doesn’t need it, try to avoid buying inflated products
Everyone just feels like spending a lot at this time
What are reasons that specific goods and services could be priced too high?
It makes much more sense to think of things in absolute terms rather than percentages, which obscure what is happening.
For example- a lot of inflationary items have increased by $1 or $2. A 20% increase in a $2 item is $2.40. Using 20% highly obscures that 40c is not much.
How do we increase supply of priority items?
How do we reduce component costs for them?
Could you buy an alternative now and buy these later?
Or to think of it as supporting a retailer who needs it?
Most Important: Part B
It appears that Central Banks raise interest rates for the specific reason of trying to change people’s behaviour around inflationary products.
However, if people knew how their behaviour was supposed to change around inflationary products before incremental interest rate rises, 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 before interest rate rises, we could just keep trying %s to persuade different groups to do these, before interest rates increased each time. So what do different groups and people in general need to do?
What do you think are the 10 ethical, safe behaviours that are most likely to lower prices- for example, among spenders, businesses that have inflation, other groups, and everyone in general when they do interest rate rises? 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 price reducing priority behaviours and help to influence for them before the next interest rate rise.
Please have a read of the articles in this series to help achieve this and please add what you think %s could be (and why) too.
