Prolonged increase of prices of goods and services will decrease purchasing power, potentially resulting in a cost of living crisis for many.
Property linkages
Extraction
The prioritization of short-term financial gains, often overlooks the long-term impacts of unsustainable resource use, which can lead to scarcities that fuel inflation. As resources become more expensive to extract and process, these costs are passed on to consumers, contributing to overall price increases. Profit-driven companies may exploit these conditions to increase profits, either by elevating prices beyond what is justified by costs or by reducing the quality of products and services to maintain high profit margins.
Centralization
Centralized economic policy and financial regulation, primarily through central banks adjusting monetary policy and interest rates, play a significant role in managing inflation. However, these measures can inadvertently lead to broader system instability, such as restricting investments in innovation or climate transition, by making borrowing more expensive. The centralized approach also risks misjudging economic conditions or responding too slowly, potentially failing to curb rising inflation or exacerbating it through inappropriate policies.
Exclusion
The exclusionary nature of property rights and economic benefits contributes to unequal impacts of inflation. Those with fixed or lower incomes, who are excluded from the benefits of property ownership and capital gains, are more severely affected by inflation. They experience a greater loss of purchasing power, as their incomes do not keep pace with rising prices, unlike those who can hedge against inflation through investment in appreciating assets.
The Property & Beyond Lab is part of the Dark Matter Labs ecosystem. It is affiliated with both Radicle Civics and 7GenCities missions.2024