Monday, January 16, 2012

Fighting Inflation is a Loser's Bet

While the performance of long term Treasury notes in 2011 seems to indicate not even a whiff of inflation, I will argue that fighting inflation for long term and sustainable savings in service trade delivery is a loser. The prevailing market rate for skilled labor ($/hr), materials ($/lb), and related delivery inputs like fuel ($/gal) will certainly rise. Meanwhile the costs of collecting, transmitting, processing, and analyzing information that might help you lower your consumption quantity for these items is continually in decline. Information is the best bet for lowering your long term service trade costs.

Read more on my blog post at DunnWell.