I like to think of a motel as one big eternal cost-cutting operation. The way we can afford to pay our staff more is by keeping overheads as low as possible.
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Tag: Core Concepts
Using the Discounted Cash Flow Method to Calculate the Value of Solar – Key Assumptions
There are some assumptions that I need to make you aware of when using certain valuation methods, including the Discounted Cash Flow Method, to calculate the value of a solar power installation once ten years have already passed. Explaining and outlining these assumptions may go some way to support my on-the-surface outrageous conclusion that, for many households, the value of a solar power installation may be worth more ten years from now than it is on the date of purchase and installation, even when considering the loss in energy efficiency that occurs over time.
The Nature of Inflation
It always used to bug me as a kid when I’d go to the local dairy and spot the soft drink that had once costed $1.40 now gone up to $1.60. As a kid, on a fairly limited income (called “pocket money”), these not-too-subtle price changes could easily cut into my purchasing potential.
Does Inflation Provide An Incentive For People To Go Into Debt?
One of the hottest topics within left wing economics is the effect that capitalism has on wealth distribution. Put simply, the fact that the rich get richer and the poor get poorer, and this so-called ‘wealth gap’ seems only to widen over time, and to put to death the lie that free market capitalism somehow creates the best allocation of resources for all concerned.
Continue reading “Does Inflation Provide An Incentive For People To Go Into Debt?”
Why Even Write About Inflation, Anyhow?
When I was living in Australia I witnessed a discussion between two professionals about how much money they thought they should accumulate before entering permanent retirement.