Pricing Power : The phenomenon where the value of money falls below the price of goods is called inflation , and it is said we are currently in an era of inflation. However, it’s not that simple. Inflation is realistically characterized by prices not rising all at once during an inflationary period but rather increasing rapidly for some items and slowly for others over several years. This phenomenon is known as the ‘ Cantillon Effect .’ In other words, inflation is neither uniform nor regular. Conversely, when prices fall below the value of money, it is referred to as deflation . To survive deflation, companies must innovate, often by reducing costs and expenses. During inflation, rising costs must be passed on to other economic agents through increased prices, a concept known as Pricing Power. Since companies cannot pass on all the rising costs, many go bankrupt during periods of inflation. - Joseph’s “just my thoughts”
One of the principles prevailing in the natural world is that the stronger prey upon the weaker. The strong eat the weak. Thus, people seek strength. However, the statement that the stronger prey upon the weaker is partly correct and partly incorrect. The principle that survival of the fittest prevails in this world suggests that those who adapt survive. “ Adaptation ” is the strongest thing in the world. - Joseph’s “just my thoughts”