Impact of inflation

[holgerdanske]

I don't think I've ever seen any Western government do anything to promote a normal life - a sensible education/apprenticeship, a pathway to home ownership, a family. Just as the basics. They don't even give lip service.

What they do instead is to legalize previously illegal minor drugs like marijuana. Just happened in Germany and Spain, and it’s going to happen in the rest of Europe. Clearly the idea is that a drug addicted apathetic populace will not stand up and resist their repopulation agenda.

 

[NoMoreTO]

I am currently building a house, hiring all my contractors, and a friend is doing the majority of the interior work. Prices are in many cases out of control. I still feel that the cost to build will continue to increase as the supply of men who can do "real jobs" is under pressure with boomers retiring. We are now coming into final stage of the build, working through interior.

A recent example on interior doors. I was quoted for 10 interior doors, 80" height, "hard core" mdf doors
$420 CAD per door - A ridiculous price when you are buying one door but when you are looking at 10, well I asked whether I could just not have doors and install slowly as needed. Bathroom and bedroom door, skip all the closets. I'm trying to find a better deal, I'll probably go ahead and suck it up, but it's weird.

My guy was telling me that in 2019 these were $135 CAD/ door at Home Depot. And I am buying 10 at a time, so not much of a volume discount.

 

[paternos]

I am currently building a house, hiring all my contractors, and a friend is doing the majority of the interior work. Prices are in many cases out of control. I still feel that the cost to build will continue to increase as the supply of men who can do "real jobs" is under pressure with boomers retiring. We are now coming into final stage of the build, working through interior.

A recent example on interior doors. I was quoted for 10 interior doors, 80" height, "hard core" mdf doors
$420 CAD per door - A ridiculous price when you are buying one door but when you are looking at 10, well I asked whether I could just not have doors and install slowly as needed. Bathroom and bedroom door, skip all the closets. I'm trying to find a better deal, I'll probably go ahead and suck it up, but it's weird.

My guy was telling me that in 2019 these were $135 CAD/ door at Home Depot. And I am buying 10 at a time, so not much of a volume discount.

I see the same. Recently, there has been growing scarcity and inflation in many economies. I think this is in part by governments printing more money. At the same time, state-controlled education systems have incentivized pursuing university degrees over vocational trades for decades. This combination of monetary policy and educational policy seems to have shaped the modern labor market.

Specifically, university enrollment surged in many countries over the past 50 years. Governments and educators emphasized white-collar office jobs and convinced many that hands-on trades were undesirable. This led to an abundance of graduates with degrees tailored for administrative, managerial and desk-based roles. By one estimate, the tertiary education rate rose from 10% to 35% between 1980 and 2015 across OECD countries.

However, this imbalance between academic and vocational education may be correcting. Skilled trade workers seem to be in increasingly high demand nowadays. Anecdotal evidence suggests some seasoned tradespeople secure favorable employment on their own terms, unlike in decades prior. The home renovators, electricians, and contractors I know personally appear to thrive without university pedigrees. Several have purchased homes and built assets through hands-on work.

But a trend seems to be coming. Many 30 and 40-something desk-job professionals I know instead struggle living in cramped rented apartments despite impressive credentials. This contrast raises interesting questions about the relative value of white-collar and blue-collar career paths looking ahead. It will be important to see how the job market and education system evolve, but early signs suggest a potential reversal in fortunes between the "suits" and "boots" in high demand fields.

 

[Sandalwood Peak]

I get where she is coming from and I am not doubting that she and others are struggling financially but note that she is wearing an Apple watch, ear buds and looks like she had a manicure.

I believe it was John T. Reed in his book Hyperinflation and Depression, he stated that in 1930's America women still went to get their hair done.

I think you're getting a little confused here. She's not in abject poverty and didn't claim to be. So this argument doesn't work here. If she was in some African village with a MacBook, I could see the argument. This appears to be an employed black American woman most likely in an urban environment. She's going to have money. What you're witnessing here is someone dropping from the middle class into the lower class.

Dropping social classes is an extremely distressing situation, especially dropping into the lower class which is not where anyone would want to be. I hate to sound like a liberal but poverty is a trap. Money isn't just about sustenance. Money carries social value. Money is about opportunity. When you're at the lowest economic bracket, everything becomes a problem.

You have to live in a dangerous or derelict neighborhood.

You have to use public transportation so your mobility is very limited, you have follow schedules, it's dangerous, it eats a lot of time. If you buy a car it eats your budget, you can hardly repair it. A car becomes a burden.

Keeping your job becomes very important, you become more complacent. Less likely to job hunt. Less likely to relocate.

You're limited in what you can do for entertainment.

You're limited in your social exposure, your friends will mostly likely be broke and stupid. The women will be very promiscuous and perhaps unattractive. Anyone else will not bother with you.

You're under a lot more stress. You feel hopeless. Substance abuse, shacking up with a bad partner, out of wedlock pregnancies become a likely scenario. Jealousy and envy may begin to consume you. You're exposed to a lot more bad and flawed people, who can't be avoided. You might engage in illegal activities to make or save an extra dollar. Unforeseen expenses destroy you.

Obviously someone can say just get a gameplan together, get a diploma, live with parents, save every penny. Well this advice is based on the idea that there is greener pastures elsewhere and that you're intelligent and determined enough to seek it through. What we're going to witness now is the opposite. We're going to witness people, like her, get pushed down into this hole I described.

 

[Handsome Creepy Eel]

I've been consistently budgeting the same amount of 100 EUR per week for groceries for a few years now for my family of 3.

Back in 2019, I routinely covered all the groceries, including hygiene and cleaning suppliess and even random things like over the counter medicines for the entire week, and still had enough money left to order takeaway twice per week or go out for dinner with my wife once per week. The house was always well stocked with generous reserves of everything we needed.

These days, I don't ever order takeaway or go out for dinner, I buy only the barest necessities to the point where there are always several basics unavailable or about to run out, make ample use of the cheapest in-house supermarket brands, and I still routinely run out of money before the end of the week. If that 100 eur manages to get us through the week without needing to add emergency reserves at the cost of something else, we consider that a huge success.

The total inflation in the last few years is well over 100% by me reckoning, but it's been especially bad in the last year. I can't imagine how we'd survive if we had to pay rent too.

 

[It_is_my_time]

I am currently building a house, hiring all my contractors, and a friend is doing the majority of the interior work. Prices are in many cases out of control. I still feel that the cost to build will continue to increase as the supply of men who can do "real jobs" is under pressure with boomers retiring. We are now coming into final stage of the build, working through interior.

A recent example on interior doors. I was quoted for 10 interior doors, 80" height, "hard core" mdf doors
$420 CAD per door - A ridiculous price when you are buying one door but when you are looking at 10, well I asked whether I could just not have doors and install slowly as needed. Bathroom and bedroom door, skip all the closets. I'm trying to find a better deal, I'll probably go ahead and suck it up, but it's weird.

My guy was telling me that in 2019 these were $135 CAD/ door at Home Depot. And I am buying 10 at a time, so not much of a volume discount.

Yea, my brother works in a similar business and we were at a Home Depot not long ago looking at exterior doors. He said this door was about $199, with a rebate four years ago, now it is $425. Very same door. Insane.

 

[elkokun]

Ok, but what do you suggest in order to combat/mitigate inflation in our daily lives?

 

[eradicator]

Ok, but what do you suggest in order to combat/mitigate inflation in our daily lives?

Work out a grocery budget each week. Some items you may have to do without. Let’s say you budget 100$/week for all your food: you buy rice, vegetables, cereal, milk peanut butter, bread, and some sort of protein(chicken fish, meat). If you hit your max that means you don’t buy orange juice or coffee or dessert that week.

To lower your energy bill you run your ac a limited amount per day.

If you have money left over you can buy Bitcoin with the intention of holding it at least 3-5 years or until the next cycle peaks

I may be misunderstanding the question?

 

[Roosh]