Price spread is the difference between their selling price and the aggregate prices.  This translates to the difference between inputs and outputs.  The rate of return depends on the price spread.  The talk about the relationship between profits and inflation is beyond preposterous.  This is just Keynesian nonsense.  So, if a business or individual is to do well, price spreads need to be considered, not blindly asking for more inflation.  Price spread is a solid principle of the political economy.

As mentioned, price spread is the difference between inputs and outputs.  This may seem vague an unimportant, but I assure you it’s not.  The business aspect will be discussed first.  It is not uncommon to hear: there needs to be inflation so businesses can profit or there needs to be inflation so you can buy goods.  This is not true, even ludicrous.  Inflation is to redistribute income.  This will be said because some want the masses to ask for inflation.

If a business spends 1 ounce of gold on inputs, it does not need more unbacked paper tickets to make a profit.  A business does need to charge more for what they sell than what they buy to transform into what they sell.  More money doesn’t have to be printed for this to happen.  Also, inflation isn’t needed to keep up with the sale price of goods.  It’s important to know what money can buy.

If a business expects inflation, they will sell the goods at a higher price.  Likewise, the input seller will charge more for the goods.  Prices may rise with just the expectation of inflation.  However, if a business doesn’t expect inflation, they will negotiate a lower price for the inputs because they know they can’t sell above a certain price.  The business still achieved a positive price spread without inflation.

A business can also profit with deflation.  Yes, you read that correctly.  And you get lower prices.  Do you want lower prices?  You want deflation.  Please read the article here.  A company can profit if the inputs and outputs are 1 ounce of gold, if the 1 ounce of income buys more.  In order for this to happen, there needs to be less paper tickets.  So, the purchasing power would have to rise.

Say you have a mortgage, many do.  You might get an interest rate at 3 percent.  Do you ever wonder why the price of lumber is so high right now?  It’s like people don’t remember the 2008 financial crises, I digress.  This may seem as if you’re paying more, but that’s not the only factor to consider.  How much will the money be worth when you pay it back.  If the inflation rate is higher, at the money printing rate, it will be.  You’re actually getting a negative interest rate.  That means you’re being paid to take out a mortgage. 

 Understand that information is being manipulated, intentionally.  Be a truth seeker.  Don’t accept what you hear from the people who want to hurt you.  They want you to think you’re dumb, and these complicated matters should be left to some esoteric group.  Economic matters are not difficult.   You’re an individual with reason.  Use it, seek the truth.

Reference

Murray Rothbard; Man, Economy, and State