Cheaper Inflation Methods D
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 here, because some large %s of methods are suggested, and some could be really helpful.
So how do we solve inflation?
What are perspectives to think about inflation, that can help to create %s of the 50 solutions?
Reasons for inflation, and potential %s and methods to get inflation under control faster
Inflation from increased demand for specific products
Inflation is usually the result of high purchasing demand and not enough production supply of a product resulting in a price increase- when the purchasing demand for a product gets higher than the available production supply, the extra purchasing demand can push the price up.
Therefore, one type of method to decrease inflationary prices is by the total number of people buying a lower total dollar amount of the inflationary product.
This could be by decreasing the total number of people buying a product, or by decreasing the average dollar value of the product bought per person (e.g. lower quantities or cheaper products).
For example, this could be by finding alternative products instead of the inflationary product, waiting e.g. months or years before buying it if you don’t need it, asking people- if something has an inflated price and you don’t need to buy it, to not buy it, especially wealthier people who can afford higher prices, and by buying investments that make products a lot cheaper (e.g. solar panels, house insulation or solar hot water).
Cheaper Inflation Methods B offers 16 out of 50 potential methods for how to do this.
This method could be quickly applied to inflation by picking 5 economic methods (e.g. out of the 50 so far) that would help your regional economy most each week, and if you find opportunities to do %s to encourage these solutions (while also encouraging people to do what is economically right for them first, and this if they can help), to do it.
Higher interest rates try to lower spending of inflationary products by reducing the amount of income that people have to spend (however, to please remember that methods for inflation literally didn’t exist a week or two ago- they literally didn’t exist a week or two ago).
So, inflationary prices could also decrease from decreases in people’s total spending. However, decreased spending in specific inflationary products would be more helpful.
Please visit Cheaper Inflation Methods B for more inflation solution methods for decreasing purchasing demand.
Inflation from decreased supply of specific products
The other half of the equation above is not enough supply:
Inflation is usually the result of too much demand and insufficient supply leading to a price increase- when the production (or available end) supply for a product is lower than the current demand, then the lack of supply pushes the price up.
Cheaper Inflation Methods C offers a variety of ideas for methods how to solve this…
For example, here are 8 out of 50 potential perspectives that could increase supply of an inflationary product:
It could be through businesses in other areas switching over to this area, or it could be through new businesses starting in this area.
It could be through the average quantity produced by current businesses increasing, or it could be through businesses that produce a mix of products switching to this product more.
It could be through increasing the financial or other benefits for producing this product (this is effective if the benefits are higher than the benefits for producing other products… it needs to be a long-term win/win though), or it could be methodological or technological tools or methods that increase the number of products that can be produced by current businesses.
It could be if governments or research bodies could analyze inflationary products and their component parts and either search for ways to improve them or telling the people what the problems are so that people can help with %s to improve them.
It’s also important to note that the production supply of a product could be different from the available end supply of a product.
Any other safe, ethical %s to increase the supply of inflationary products would be helpful for decreasing prices and slowing down interest rates.
Please visit Cheaper Inflation Methods C or scroll down further on this page for more %s for increasing supply.
When the prices of components decrease, or the cost of the methods of production decrease, this often leads to a decrease in the overall price level, as businesses can afford to lower prices to try to increase their sales quantity in comparison to their competition
Therefore, methods to decrease the price of components or the price of overall methods of production can help to decrease the price of inflationary products. If supply components like transportation can be made cheaper, this means profitability could increase, increasing the amount of production for that product.
Apparently, this is one of the reasons for the current inflation: An increased amount of purchasing of long-term products (versus consumable short-term products) placed pressure on supply chains and available transportation, where the supply could not meet the new purchasing demand across the supply chain. Therefore, any government or private reviews of how and where this was happening and publicly communicating the results and any recommendations could be really helpful.
For example, the above might find that shortages in specific parts of supply chains were creating increased prices. If the public knew what these were and what other types of products were connected to the supply shortages, they could increase %s to solve these (or purchase less of connected products to shortages).
One example of supply components is that the largest and most important component of food production is fertilizer… fertilizer increases food production by anything between 3 to 5x.
Therefore, thousands of %s to increase the supply of fertilizer would be incredibly helpful for food production in the future.
If you go to Cheaper Inflation Methods C, you can find more methods for cheaper components. Some examples of these include:
Making sure all the major component costs are thought about
Finding ways to increase their supply
Finding ways to decrease their purchasing demand
It could be finding ways to switch the purchasing demand of inflationary products to alternatives in the supply chain, so that purchasing demand is closer to supply
It could be making sure people knew about this so they knew what to prioritize purchasing
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 number of suppliers
It could be increasing the quantity that suppliers produce
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.
Inflation from export prices
A product’s end supply is not only the amount produced at the start, but also the end price, which can be affected by low or high costs along wholesalers, retailers, transport, the whole supply chain.
Exchange rates are one part of this, but they are often not controllable.
Another part of this is export prices overseas.
What this means is, if there is high purchasing demand for a local product overseas, the price of the product being exported becomes higher overseas, so sellers prefer to sell it overseas, and increase the local price so that it is closer to the overseas price. This also means that exports become more profitable and more people are encouraged to enter the field- to sell it overseas first.
So you need to compare the price locally to overseas.
If you find ways to lower the price overseas (e.g. increase international supply, make international components cheaper somehow, lower international purchasing demand, get people internationally to switch to alternative products), this means that local prices will become cheaper too. Therefore, this just means that the %s need to be international as well as local.
Inflation from other price rises in the International Markets
If prices of goods, services, or component parts get higher internationally, then the sales price of imports increases too.
Therefore, to solve this, this just means that the %s need to be international as well as local.
Inflation from stockpiling
When people stockpile goods (e.g. they feel that prices will increase, so they buy more now), this reduces the overall supply and creates inflation.
Therefore, asking people to avoid stockpiling of inflationary goods when they don’t need it is helpful.
It is also helpful to have strong inflation reducing strategies in place so that people are reassured they can buy the products later.
Inflation from supply shortages
When there are shortages of goods, services, or components, this reduces supply and increases prices.
This could be through things that people can’t directly control, like climate change and natural disasters, or unexpected events that affect world supply.
Therefore, ways to increase the supply or decrease the demand, % by % by %, could be thought of in advance, in case this happens.
Inflation from increased speed of money circulation
The faster that people spend money, the faster it gets re-spent through an economy, increasing inflation.
Therefore, asking people to lower overall spending might slow this down, because they will spend less overall.
However, it is most important that people lower spending on inflationary goods rather than other goods (80% / 20%).
Inflation from increase in government spending
If people have a lot more money to spend than usual, and spend it on specific inflationary products, this causes higher demand and higher prices. However, if people know what alternatives to inflationary products are, and buy these instead, it might have less of an impact.
Inflation from printing money by the government
Increasing the supply of money increases all round inflation.
Printing money is nearly always a mistake because it causes nearly guaranteed inflation.
What are other perspectives to try and create more %s of solutions?
Here are more methods and perspectives to decrease prices of inflationary products:
Inflation for some types of goods comes from several of the factors on this page, so dealing with as many of these as achievable.
How do you increase supply of overall products?
How do you get component parts like shipping and transportation to become cheaper?
How do you increase supply of component parts?
Prices are increasing because specific component prices are high, so businesses want to pass on costs
High purchasing demand from consumers raising prices higher than usual, because businesses know all of their stock will sell even at the higher price
There’s high demand for specific goods and services-
How do you switch to alternatives- what sort of alternatives are there and which ones could be helped with incentives?
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 or buy alternatives
Everyone just feels like spending a lot at this time
What is preferred- higher interest rates or higher inflation?
The ideal would be neither
Central Banks say that interest rates are returning to pre-pandemic levels so this is probably needed. The interest rate now is similar to 2007 to 2012 levels
However, how can it be stopped from going too much beyond pre-pandemic levels, for people’s sakes?
One of the problems is that there isn’t enough supply… and tight supply means higher prices
A good or service is also made up of components… if those are priced cheaper, the price might get cheaper
If demand for inflationary products can be reduced somehow, this will also help to lower prices and also interest rates.
For food, it is extremely important to increase fertilizer worldwide, because fertilizer 4x future crops. This makes a huge difference to future food prices.
What are %s to make sure that the right amount of fertilizer worldwide is produced and sold, % by %?
Can fertilizer exports be completely allowed?
This would help world food supply 4x and would be an enormous win/win for everyone.
What are 10,000 %s to increase worldwide fertilizer production and sales?
The % above would solve nearly 90%.
Really strongly encouraging enough fertilizer production worldwide.
We can’t prevent climate change problems flooding fields though.
Decreasing the amount of meat supplied would open up a ton of cropland for humans.
Could there be ways to persuade people who don’t grow food to grow food, or to grow more food?
And could there be government help with payments to more vulnerable or at-risk people?
Persuading energy, asking coal, oil and gas companies to stay open well after renewables are built and certain
We might need to build or open more coal, oil and gas companies in the short/ medium term for winters
Rolling out renewables at a huge scale, for example, producers (e.g. solar farms), transmission networks, making networks flexible, solar panels on roofs
International supply of energy needs to increase, and people need to use way less of it
In terms of increasing worldwide supply and supply of components,
What do you think are 20 ideas to ethically increase supply, even if it took hours, days, or weeks to come up with them (while also achieving the 2025 goals and 2030 goals)?
It would be so good if the whole world could attempt 20 things each, including improvements on previous methods.
Here are my attempts at 20 %s for increasing supply or increasing supply of components:
1. Maximise the number of people who get solar systems on their roof, solar water heaters, and technology that both saves them money, reduces their use from the energy grid and increases the supply of electricity.
a. However, make sure that only the right people do this- if someone is going to move house in a couple of years, it might not be profitable.
b. People also need to spend at least 2 hours over several days going over hundreds of pictures of solar panels on houses and control exactly the width of the solar panels and where the solar panels go on their roof, for their house’s selling value.
2. Maximise the number of people who know about government incentives around all the above that make them cheaper and more appealing
3. Create a list of the 100 best things people could do around efficiency
4. Ask governments to do a review on any expensive component parts like shipping, to find out if there is anything they could do or any supply information the public needs to know for problem solving %s
5. Ask governments to do a review on any high priced supply areas (e.g. energy, food, fuel) to be able to share the specific reasons why they’re priced high with the public, in the hope that enough people do 2 to 15 % attempts per week and know what the really specific problems are. Different people bring different knowledge and solutions
6. Ask governments if there is anything they can do to help people who need help financially
7. Prevent closing coal, oil, gas until there is enough renewables to cover them
8. Hugely roll out the number of renewables in all countries, making sure that variability is adequately addressed. Variable renewables can be reliable, according to 2017 Department of Energy report https://www.energy.gov/sites/prod/files/2017/08/f36/Staff Report on Electricity Markets and Reliability_0.pdf
9. Understand the 2025 and 2030 goals better so as to be able to achieve these at the same time as increasing supply/ decreasing prices: https://www.france24.com/en/environment/20220404-emissions-must-peak-before-2025-for-liveable-future-un-report-says
a. To deal with the 2025 goals using demand-side strategies rather than supply-side strategies. For example, to regularly ask people to use less energy rather than force them to.
10. The world supply might need to focus on aggressively building new renewables,
a. Any ways to make these more affordable would help
b. Any ways to increase country-wide income would help
c. However, with coal, oil, gas stations closing only after renewables are working thoroughly to protect prices
11. To ask citizens to focus on the other things they can do, like reduce food waste
12. At times when the number of renewables can’t be rolled out, do all the preparations for them so that when they’re ready, they can be rolled out as quickly as possible
a. Making the new renewable energy grid as ready to go as humanly possible
b. So, if not fully rolling out yet, every preparation for rolling out has been done before
13. Increasing the amount of energy supplied through the already existing coal, oil and gas stations until renewables have increased
14. If the government wants to build more coal, oil, gas stations, to say how they fit with the 2025 and 2030 goals so that people understand
15. To source coal, oil and gas from new suppliers
16. If government wants to mine for more coal, oil, gas stations, to say how they fit with the 2025 and 2030 goals so that people understand. Would these make component parts cheaper?
17. Ways to understand what is happening better… for example, if the total supply has decreased, and people want the same amount of electricity, then the people who pay the most get it. So either the demand has to reduce or the supply has to increase
18. Opportunism- if businesses charge high and people pay higher, they might have an incentive to. If component costs are higher, this could get passed forward.
19. How do exchange rates fit with supply? This would be about importing overseas coal, oil, gas? So if more coal, oil, gas was sourced, it would be cheaper?
“The US dollar is at an all-time high against other major currencies. The oil used to make petrol is paid for in US dollars. So a weak local currency against the dollar makes fuel even more expensive.”
Don’t exchange rates make prices higher or lower? And its higher because of interest rates but I can’t remember how.
Emissions must peak before 2025 for 'liveable future', UN report says
Climate Change Must Begin to Fall by 2025, Says Climate Report
Humanity has two years to halt the rise of planet-warming carbon pollution, UN climate experts warned Monday, with any delay to peak greenhouse gas emissions likely to result in smashing through climate change targets.
The UN's Intergovernmental Panel on Climate Change said emissions have to peak before 2025 and drop sharply to keep even the more conservative Paris treaty warming goal of two degrees Celsius in play.
Reduce demand for energy
So-called demand-side strategies – plant-based diets, electric vehicles, car-free mobility, telecommuting, climate-proof buildings, enhanced energy efficiencies, fewer long-haul flights- could cut CO2 emissions by 40-70 percent by 2050.
"Rapid and deep changes in demand make it easier for every sector to reduce greenhouse gas emissions in the short and medium term," the report said.
Globally, households with income in the top 10 percent contribute up to 45 percent of total greenhouse gas emissions.
Curb methane
The potent greenhouse gas methane – 21 times more powerful than CO2 over a 100-year time span –accounts for nearly 20 percent of global warming.
A third of that in 2019 was from fossil fuel production leaks. It is also generated by livestock (cows and sheep) and landfills. There are natural sources of methane as well.
To cap warming at 1.5C or even 2C methane emissions – which have been rising steadily – will need to drop 50 percent by 2050 compared to 2019 levels.
In Project Drawdown, this had these parts: Methane Digesters, Methane Leak Management, and Landfill Methane Capture. There could be other ways too.
Suck CO2 from the air
Even in optimistic emissions scenarios, several billion tonnes of CO2 will need to be extracted each year from the atmosphere by 2050, and an accumulated total of hundreds of billions of tonnes by 2100.
"Carbon dioxide removal (CDR) is necessary to achieve net zero CO2 and greenhouse gas emissions both globally and nationally," the report says.
Strategies ranging from tree-planting to machines that chemically extract CO2 from thin air will compensate for sectors of the economy that most likely won't be able to decarbonise by 2050 such as aviation, shipping and cement.
If global warming overshoots the Paris treaty targets, CDR will be also be needed to lower Earth's surface temperature.
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 worldwide 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 groups to lower prices (in win/win ways for businesses), to get inflation down and to slow down interest rate rises.
But what can different groups- and people in general- do to reduce inflationary prices?
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.
