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This article will be about money, time, inflation and real consequences on people's life around the world
One of the main reasons your money seems to disapear from your bank account is by a financial mechanism called inflation.
Contrary to what many people may think, inflation is not caused by matches that burns your money.
Money volatility is not hypothetical it is a fact, money can sometime be seen as the water when submited to hight temperatures, it can evaporate from your account (...)
Your money (the amount of water in this case) descreases very fast when inflation occurs.
One example of inflation is for instance when the central bank of certain countries decides (for doubtfull reasons in some cases) to print money.
This Money printing has many consequences:
the first one of them is that the value of the money decreases very fast.
Regular people become poorer an poorer with money losing its value, they can no longer afford owning a car, a home or paying for grocery ... a lifetime work is eroded and melts like icecream in the sun
The cost of living becomes unaffordable and there are no jobs to improve the quality of life for the majority of them.
Young people have to live in their parent homes and do not see a future for themselves nor for their children if they were lucky to have some.
The second obvious consequence is an increased value of the assets of very few people.
those assets include for exemple luxury Properties, Hotels or very expensive Buildings.
Like the rain coming from the sky money appears suddenly from nowhere for those few "lucky people".
This phenomenon could be seen as a transfer of wealth from your savings to the wealthy owners
Like in chemistry nothing appears or disapears but it simply transforms
What evaporate from your bank account seems to transform into ice that solidifies the assets of the very fiew (...)
Another way by witch the value of your money is lost is by increasing the cost of energy.
when a company wants to sell goods it has sometimes to produce them or import raw materials or even the merchandises themselves.
in order to produce or transport those goods or materials, it needs energy like oil that fills the trucks or the ships to transport them. Energy like electricity for instance could also be necessary for maintenance production as well ...
So the question in what happens when the cost of energy increases for those companies ?
Uusualy (as the bank never looses in the trade process...) the company is simply going to transfer the cost to the customers.
Consequently the exact same good is now way more expensive for the customer.
Your money as a customer can now buy less goods in average than it could have had the day before the increased cost of energy.
In order to make this less obvious for the customer the company has a buffer time, that means that the cost increase of the Good is not alway immediate, however it will occur no matter what at time or another because the supplier needs to make money not to lose some in the process
Ones the customer is used to this increased cost, usualy even if the energy price goes down the Goods price itself will not go back to what it was before the energy increased cost ... so your money never deflate but keeps loosing its value not matter what ...
Now that we have seen how the cost of energy can affect the value of your money from a supplier point of vue, lets try to understand how the cost of energy can directly affect the customers and the employees.
First of all, many of the customers need vehicles to go to a supermarket, cornerstores or any suppliers they would like to purchase something from, weather we are talking about a Services or Goods.
Those vehicules require energy like oil or electricity.
So you have to spend more to go to your supplier, that means that you need to spend more money to get the products you wanted, therefore transport is another cost added to the price of the products you purchased..
Now Lets talk about your Incomes and how energy prices directly affect them.
In order to go to work you usually need to use a car for instance.
If the transportation costs are up due to the increased cost of energy, this automaticaly means that your production costs (or work) are going up as well
At the end of the day you end up asking yourself a simple question is it still worth it as before?
The obvious answer is no, it is not as beneficial as it was before the increase in energy prices.
As a worker i'm making less money for the same work because i have to spend more money to make the same amount of money if my salary does not go up
This is simply called in finance the cost-benefit Ratio.
In This case we can conclude with no ambiguity that the value of our work and time is depreciated by the cost of energy (...)
LOL This is just an exemple nothing else ...
This article has been written by The people of the world ...
This article reflects the author's individual opinion and not the official position of the domain name :)