Inflation is something that is being mentioned during state of the nation address. Aside from being a number that mentioned and followed by applause from congressmen, what is its real value to us? Why does it happen? And who is responsible for inflation? The answer is within us. Our way of life dictates where inflation would go.
Inflation is a Reality that Everyone Must Accept
Time changes a lot of things in life. From our appearance, to our concept of rich and poor, and even to what is fact and fiction. As we live through our life we realize that most of the time, things are not the same as we used to remember. I would like to relate it to the PhP100 bill that we have today. When I was in college, this PhP100 goes
…show more content…
We spend more as we pursue a higher quality of life and quality is almost synonimous to the price we pay. Going back to my PhP100 bill example, in the old days, my spending can be broken down to two major categories; fare and food. But now I believe the PhP100 of a college student will be broken down to the following, fare, food and telecommunications. Having this additional segment take a share of the PhP100 pie means that more jobs and more jobs means more money and more money means more spending, it is a vicious cycle that goes round and round. And the effect of this cycle is that PhP100 that a student needs to last him a day 12 years ago should now be at PhP180. Should we resign to this idea? We should not, because we can do our fair share to diffuse the effect of inflation. We can do it by controlling our impulse to spend more and continue to save for our future. Why do you think the US is in financial trouble and Philippines is not? Because the US is a land of excess, when they were enjoying life as they know it, people there will buy anything for any price and usually on credit. This behavior overinflated their economy, which lead to a financial crisis that is already 4 years running. While in the Philippines people are traditionally conservative financially which means that people get the value that they pay for. A simple example to prove this is to compare pack of cigarettes in the Philippines vs. other countries. Being conservative in