Anyone who knows me will tell you that I am not very good with money – I don’t respect it. The reason for this is that I simply do not understand it. What I really don’t understand is inflation. Why do prices and wages constantly have to increase? Have you ever found yourself in a situation like this…? You are in a pub with some friends and you have just got a round in. You carry your beer back to the table and say ‘By ‘eck, I remember when I were a lad – pint were 25p. How come it’s now £2.80!?’ A good question I think and one I ask often. Now here’s my question to try and resolve what’s puzzling me about this money lark – Why can’t the pint stay at 25p???
‘Don’t be crazy’, they say in return – ‘after all, you were earning far less back then’. Very true, but that’s also part of my question. Why can’t things stay at the same price and why can’t wages stay about the same too? After all, if prices didn’t rise, wages wouldn’t have to either. It’s like some kind of self delusion. You feel that you have somehow moved on, climbed the ladder, because you are earning 4 times what you earned way back then. However, way back then, you could get 4 pints of beer for a pound, now you need £3 just to buy one! That’s probably a huge decrease in actual value of your earnings, is it not? It certainly would be if you lived on nothing but beer
It largely seems to me that this happens simply because everyone does it – all the money markets around the World play the game, but I really have absolutely no idea why, apart from the fact that this game allows certain parties to make crock-loads of cash. As we know, the money markets have become increasingly crazy anyway. You can sell shares that you don’t own, just borrowed, using them to bet on another share’s position rising or falling, then buy them back at a profit. You can bet on the value of a share at a certain date in the future and make money from that. It’s not a stock exchange, it’s a bloody bookies! If all these stock values were not going up and down like a tart’s drawers, all these crazy practices would surely vanish overnight.
Maybe to an economist I am the worst kind of Luddite, but the logic of this constant growth in prices and wages simply escapes me.
Puzzled and skint of Brighton. I’m off for a pint…



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