What can we do as indviduals to stop inflation?

Question

What can we do as indviduals to stop inflation?

Answer 1

I agree with Michael.  Start saving and stop living beyond means.  Americans actually engage in dissaving (spending more than you make).

If we saved more.. put it into banks.. there would be more capital here to borrow instead of borrowing on the foreign market.

Answer 2

research where your products are coming from and invest in your countries products

http://www.youtube.com/watch?v=buZahX5sM...

put this url in and check it out

Answer 3

As individuals?

Two things.

Firstly, save, save, save, save, save. As much of your money as possible should be saved. This will reduce the demand on the economy and hopefully reduce inflation.

The second thing, is work, work, work, work, work. This adds productive capacity to the economy.

So if you work hard, and save the money you're earning, you will have the effect of increasing output of the economy, and reducing demand on that output.

However, the problem with that, is that inflation encourages us to buy things now instead of saving, because we know they're going to be more expensive in the future. But hopefully, with a good savings account, you will get a high real rate of return, that is a good return on your money, after inflation is taken into account.

So basically, the individual can help fight inflation by saving as much as possible, and doing as much work as possible for the same amount of money.

Of course, the effect of the individual is minimal unless everyone does the same thing, and clearly, there are people who don't want to save - they want everything NOW, regardless of price.

There's also the problem that you might work harder, and all that does is put more money in someone elses pocket, and they spend it instead of you, having no real effect on inflation.

So the work harder part is alot less important than the saving part, especially when that just means that you miss out on what you could have, and someone else gets more.

Answer 4

Save, work, and tell the Fed to stop printing money out of the thin air.

Answer 5

In general be more price conscious.  Stop buying bottled water at 1.50 a pop.  That's 9.53 a gallon which is a lot more than it costs coming out of the tap.