Inflation has reached record levels in recent years, forcing many countries to consider unconventional monetary policies to fight it. However, while some may want to freeze prices, others may seek to raise them – notably through the introduction of online gig-working platforms that allow for flexible hours, remote work and the ability to sell your skills to the highest bidder.
5 Facts About Inflation You Need to Know
1. Global inflation today stands at 1.9%, considerably higher than the previous year (0.7%) and the previous quarter (1.5%). According to the International Monetary Fund (IMF),
“inflation remains high and is likely to increase further. Global economic growth is projected to be relatively slow in the next few years. This is expected to put further pressure on living expenses and create greater uncertainty about the future direction of inflation.”
This comes as no surprise to those who have been following the fluctuating price of basic commodities over the past year – including food, fuel and healthcare products. Global political and economic instability have also contributed to elevated levels of uncertainty, preventing central banks across the planet from implementing truly stable monetary policies.
Record-breaking Inflation Threatens To Reverse Global Prosperity
If you’re someone who relies on monthly paycheques to make ends meet, you might be feeling the pinch from higher inflation – even if you’re not directly affected by the rising costs. Those who do business with the government – from businesses supplying goods and services to the military and national security apparatus to healthcare professionals who provide their services to the elderly and/or infirm – will feel the strain posed by higher inflation first and worst. In such instances, price rises will eat into revenue and profit margins, forcing companies to pass on the rising costs to consumers via higher prices or cutbacks in the kinds of products and services they provide.
The impact of escalating prices will be further exacerbated by the fact that many commodities – notably foodstuffs and fuel – are becoming more expensive to produce. Climate change, coupled with inefficient farming methods and rising input costs – particularly for fertilisers – has driven up food prices across the globe. In most cases, global food inflation is now at its highest since 2012 – with some products costing twice as much as they did a year ago.
Record-breaking Inflation Presents New Opportunities
While most people will be concerned about higher prices, there are also a host of positive developments that can be attributed to record-breaking inflation. One of the most obvious is the opportunity it provides for those who want to supplement their income. As mentioned above, political and economic uncertainty has prevented many central banks from implementing aggressive monetary policy, allowing for a “free fall” of money supply – as evidenced by the slide in interest rates across the developed world. This has presented an opportunity for borrowers to take out bank loans at record low interest rates – providing financing where traditional banks won’t or can’t. Given this, those who have managed to secure a steady income or pension could consider taking out a personal loan or unsecured credit card to finance their lifestyle.
Another development stemming from record-breaking inflation is the opportunity it presents for young people looking to establish credit. As mentioned above, political and economic uncertainty has prevented many central banks from implementing truly aggressive monetary policy, resulting in a “free fall” of money supply. Despite this, a record number of people are now looking to establish credit – including through online platforms – in order to establish a credit history and increase their borrowing capacity.
Record-breaking Inflation Presents New Risks
While record-breaking inflation presents many opportunities, it also presents some serious risks. One of the biggest is the risk of deflation. As inflation creeps towards the idealised “zero” rate that many economists and policymakers seek, there’s a risk that prices will begin to fall. Deflation is typically a self-fulfilling prophecy, as falling prices cause many consumers to feel relieved and decide to buy things on sale. This, in turn, will cause producers to lower prices in an attempt to maintain their profit margins.
Along with falling prices, there’s also the risk of a stock market crash. In a similar fashion to a housing bubble, a sharp rise in the price of an equity (stock) investment, coupled with a rise in interest rates, could produce a wealth management disaster. Many people have already experienced the effects of a major stock market crash, with the cost of living subsequently rising due to a decline in purchasing power. The 2008 financial crisis is a case in point, as we saw interest rates spike and, as a result, the cost of living climb.
Why Are We In This Situation?
The 2008 financial crisis coupled with subsequent quantitative easing (printing money to buy assets) by central banks around the world laid the groundwork for today’s inflationary situation. Since then, many countries – most notably the US, UK, and Japan – have opted to pursue somewhat unconventional monetary policies (including negative interest rates and quantitative easing) in a bid to fight inflation. These actions, coupled with sluggish economic growth and greater uncertainty about the future direction of prices, have created an environment highly favourable to speculators and downright opportunists looking to make a quick buck.
However, while policymakers may be tempted to use this opportunity to their advantage, they must avoid creating an environment where everyone – including themselves – is a speculator. When the going gets tough, speculators often get the short end of the stick, as they are the first to be let go by businesses and individuals who want to limit their risks.
What Can You Do To Make Money During This Inflationary Period?
With record-breaking inflation creating a potentially wealth-destructive environment, many individuals will want to make extra money – whether through increased productivity or finding a new way to make a living – in order to secure their financial future. For those who want to make extra money, today presents the perfect opportunity – with many ways to generate a steady stream of revenue. This is made possible through the flexibility offered by online gig-working platforms, which allow for people to work remotely and set their own hours – as well as the ability to sell one’s skills to the highest bidder.
Here are a few ways you can make extra money during this unprecedented period of inflation:
Set Up A Blog
Blogs are a great way to create content and showcase your skills while also potentially generating some extra cash – particularly if you can find a way to monetise your blog. The best part? You can do this from the comfort of your home, which means you don’t need to worry about losing your job or having to quit your existing one to make extra money – a major plus if you’re looking for ways to supplement your income during these trying times.
The key is to find a way to monetise your content. There are many ways to do this, including through affiliate marketing, displaying ads, or selling and trading customised digital tokens called “bitcoin” (BTC). Affiliate marketing – where you make a commission for promoting products – is one of the most popular methods, and many affiliate marketing platforms like Clickbank allow for flexible and transparent commissions.
Whether you decide to go down the path of blogging or not, the options for extra income are abundant during these trying times – so why not look for ways to make some extra cash?
Consider Taking Out A Personal Loan
If you’re someone who relies on monthly paycheques to make ends meet, you might be feeling the pinch from higher inflation – even if you’re not directly affected by the rising costs. Those who do business with the government – from businesses supplying goods and services to the military and national security apparatus to healthcare professionals who provide their services to the elderly and/or infirm – will feel the strain posed by higher inflation first and worst. In such instances, price rises will eat into revenue and profit margins, forcing companies to pass on the rising costs to consumers via higher prices or cutbacks in the kinds of products and services they provide.
The impact of escalating prices will be further exacerbated by the fact that many commodities – notably foodstuffs and fuel – are becoming more expensive to produce. Climate change, coupled with inefficient farming methods and rising input costs – particularly for fertilisers – has driven up food prices across the globe. In most cases, global food inflation is now at its highest since 2012 – with some products costing twice as much as they did a year ago.
Sign Up For A Survey Club
Survey clubs are another great way to earn a little extra money online. Many survey clubs will pay you to take their surveys – which typically range from 10 minutes to an hour – and verify that you’re a human being. Some of the more popular survey clubs with an international reach include Swagbucks, OneOpinion and Ipsos iSay.