Letter Re: Purchasing Power
HJL: That was a great article series. I personally work to create things with my knowledge, skill, and labor that will ride with inflation. Since I do it myself, my labor goes into the thing that rides with inflation without being taxed. I’ll also note that insurance companies watch very carefully what they will have to pay to fix your car or your house and adjust rates accordingly. My income is a percentage of that premium. My income is therefore indexed. The other side of the coin is that when business activity drops by half, like it did in contracting …