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”
Just as there is a distinction between rich and poor, there are also wealthy and impoverished thoughts . If you think poorly, you become poor. The mark of impoverished thinking is dwelling on the past instead of embracing the present. It’s said that the past was better, unable to accept the progress of the current system . When comparing the two, people often value what is familiar more than what is better. As a result, they make a less favorable choice and justify it. There is a pitfall in familiarity . - Joseph’s “just my thoughts”