And as a result, consumers have
less purchasing power because their money isn't worth as much as it once was.
Not exact matches
The
purchasing power of the fixed income stream deteriorates, the investor has
less ability to recoup
purchasing power because of the shorter investment horizon and more conservative allocation, and the investor's potentially higher effective inflation rate (due to greater exposure to health care costs) tends to make any shortfall more painful.
By this, I mean, if inflation kicks in, interest rates should rise, and homes will effectively be worth
less because of the decreased
purchasing power.
So if we started to get inflation that's going to create a real problem for the central banks
because they won't be able to emit in the quantities of currency they've been emitting
because that will fuel inflation and inflation of course destroys capital, it destroys the savings, it destroys the
purchasing power of wages and people actually have
less money to spend,
less purchasing power.
So, for seniors, there is an economic incentive to maximize their
purchasing power by living in places with a low cost of living, and to stay in places with low housing costs if they already living in houses in those areas,
because their income does not depend upon where they live (unlike non-seniors who earn
less in rural areas removing much of the benefit from a lower cost of living).
Even people who keep their money under their mattress have the risk that their money will be worth
less in the future
because of inflation that reduces the
purchasing power of the cash.
Because of these existing dispatchable resources, California poses a
less challenging problem than most areas elsewhere, most or all practical renewable energy sources are variable generation, and dedicated storage must be
purchased for leveling
power output.