July 14, 2021 | Updated 2024
Dear fellow Digipreneur & ADthusiast,
I just came across an article from MarketWatch that says inflation is at its peak and once big companies make the decision to sacrifice profits for market share, prices will start falling leading us into a recession…
Ok I added the recession part because when people start expecting lower prices in the future, they tend to save their money for the future which decreases the money supply.
Also when firms sacrifice profits for market share they tend to start laying off and do hiring freezes which also decreases the money supply. That’s deflation.
Deflation is the same thing as a recession… Does that make sense?
So here’s the thing: while the media makes inflation sound scary (I agree hyperinflation is bad) a little bit of inflation is a good thing because it means the economy is growing – More companies are hiring more often using higher wages and sign on bonuses to attract applicants; Thus, increasing the money supply and growing the economy.
So my point is this: the economy is expected to grow until the end of this year, or early next year. Use this time wisely to prepare for the winter and increase your market share.
Don’t miss your boat!
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