Preface: You need to change your mind from sell sell sell to help help help and if you can do that as a business you will win [in social media] — Mark Schaefer
If Inflation Conditions Where Will Your Business Be? (Segment V)
Since the benchmark for inflationary business conditions for the majority of entrepreneurs only rewinds to the early 1970s, for a moment, let us access some earlier footage on inflationary eras. The nation of Germany portrays clear historical case studies of subsurface inflation and hyperinflation during and after two significant military escapades in just the last century.
Additionally, in earlier times, The French political philosopher Jean Bodin credited inflationary effects to nothing less than a growing volume of currency as early as the 1560s. On the other hand, the populace, thought it was a result of the avaricious capitalistic greed and uncurbed appetites for manufactured goods. Today, those with a Ph.D. in finance rightly appraise inflation as a known mechanism that, like clockwork, carefully and legally redistributes the wealth [of an economy], ultimately rewarding those with the most significant access to credit trends.
Further, according to Charlie Munger of Berkshire Hathaway fame, inflation is a solemn social subject, not solely financial. Reflect on this outlook for a moment. In his opinion, inflation is the traditional avenue to the failure of democracies. For instance, when democracies failed in South America, inflation had a big part of doing with it.
The book Mennonites and Economics on page 350 tell the history of the time of flourishing for the Russian Mennonites. Growing from a desperately poor immigrant group of 8,000 to a generally prosperous group of 45,000 with class structure, some Mennonite farms and estates became big business. Before was, inflation and social change erupted, three percent of the Russian Mennonite Capitalists owned 30% of total Mennonite land and employed 22% of the Mennonite population. The author then outlines that free-working like-kind people in business have historically flourished with an intimate tie to economic factors of free-market expansions. Again, this is a pillar to the fact that currency inflation is not simply a monetary phenomenon – it quietly conditions community after community.
While the future economic solutions will perhaps not conform to historic financial solutions, appreciating what history teaches about inflationary eras as they age will help us plan for a future where business communities will need to adapt to increasing change – socially and economically. The chronicles of monetary inflation paint a clear picture of expectations with shifts in types and shadows of resultant social trends.
Therefore, the expectation is highly probable that the inflation arising from the Pandemic since 2020 will result in new hues to the social fabric of business communities and, more broadly, the globe. Can you reset tables after a banquet begins? Will these new social hues will be increasingly evident in government administration and economic policy changes with time? If that is true, entrepreneurs managing enterprises amidst the present and future modifications with the inflationary trend likely should reflect on whether to seek great things or not, if concerned about bearing the yoke.
Why be anxious? What are you looking for? Where there is a will there is way. If knowledge saved the Egyptians during the time of Joseph, there is still reason for your optimism. And so, if inflation conditions, where will your business be? One answer is – right where our God planned it to be.