The word 'inflation' has regained a lot of attention in the past few months. The geopolitical and environmental changes happening at breakneck speed have caused our virtual 'shopping cart' to increase in price like it hasn't in a very, very long time.
While listening to a podcast with Tim Ferriss and Tony Fadell ('father' of the iPod and the Nest thermostat), I was confronted with an alternate view of the problem, that I found extremely interesting:
"When we look at inflation, I really look at it the opposite. De-inflation is stopping. We’ve been de-inflated. We’ve been moving everything offshore. We’ve been going the lowest common workforce, your lowest common monies for paying a workforce, getting rid of healthcare and all this other stuff. We’ve been just pushing the externalities on everyone else, what we’re doing to the climate. Now it’s all coming back to roost."
This action - reaction felt like a totally logical way of looking at it. What if low-income countries were just like us? What would our iPhone cost? What if the actual costs of environmental damage were included in our production? Instead of governments doing the corrections, our new day to day reality is showing us the pain points now. Inflation may not be a problem, but just another corrective mechanism.