Have Money, Spend it

I read Monika Halan's article  in 'Outlook Money' sometime back, and she had an interesting and forceful argument on the impact of inflation on urban citizens.  She contended that as the salaries of urbanites are inflation proof, who cares about inflation. I can't agree less.

Only one thing bothers me now, 'How would our behavior change in a inflationary economy?'.  Shall we keep on spending, as we did earlier.  May be not.  But then, these are the period where the distinction between the well off and very well off becomes apparent.

Ordinarily, people will curtail their expenditure and most importantly, the investment component of saving will have a sharp fall.  It would be normal to expect such a behavior.   But, then smart and most probably the rich ( the very well off) would behave differently and their investment component would increase in times of turmoil such as the times we are living in.

What I am saying in is that in a sea-saw economic condition, the rich differentiate themselves by focusing on opportunities of investment, whereas, the well off  focus on their expenditure only.  Most well off are learning this, but, as we all know, the rich will always remain that 1 percentage of the whole population, which most well off will aspire all their life.

The world does not exist for the poor and the middle class expect in marketing terms.

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