Inflation is a fact of life. Like it or not; that means next year, you'll pay more for the same products. The problem comes in when we don't think past next year. Better sit down ... $10 a gallon gas ... IS ... on the way! I don't think it will be next year, or even the next. But at some time ... it will happen.

Let's look into the past. In 1978, a new car could be purchased for $3,600. The monthly payment was $116 per month ... for 3 years. (not 7 years) today that sounds incredibly cheap. It wasn't back in 1978. The minimum wage then was 2.10 per hour. Ignoring taxes, a person would have to work 55.2 hours (116.00 / 2.10) to make a car payment. Today minimum wage is 5.85, and multiplied by 55.2 hours, is 323.14 for an equivalent car payment today. An equivalent loan would get a $10,465 car. True, that's not much of a car, but in 1978, a Ford Pinto - without air conditioning - wasn't much of a car then either. (But I was very happy to have it.) The Pinto also didn't have cruise control, wiper delay, air bags, FM radio, cassette player, CD player, power windows, power door locks, power seats, tinted windows, AND it spewed all kinds of pollution into the air because it had almost no pollution controls on it. Today's cheap car has a lot more on it, and in it, than the Ford Pinto did. We've gotten so spoiled that we don't realize what a deal today's cars are.

Looking 30 years into the future, today's $10,000 car will probably cost around $30,000. WOW! $30,000 for a cheap car! Yes, but minimum wage will probably be around $25 an hour. That's more than today's average salary of about $20 per hour. Some people who are above average today, are currently making less than tomorrows minimum wage.

If it sounds like I'm saying that today's prices are OK. Well ... they are. Some things are actually cheaper today than they were 50 years ago. I remember my parents saying that they paid $600 for a refrigerator when they got married. That's with no ice maker, no water in the door, NOT FROST FREE, just a plain basic refrigerator. Today you can't buy a refrigerator like that. And you'll still only pay about $700. In labor hours that's a whole lot cheaper than 50 years ago.

So where's the problem? Why do we feel so financially strapped today? Our technology has made life easier ... but much more complicated. Today we pay for cable or satellite TV (they didn't exist 50 years ago) Today we pay for cell phones (they didn't exist 50 years ago) We pay for internet service (that didn't exist 50 years ago) We pay for computers and software and software upgrades and spyware protection and virus protection and popup blockers (all that didn't exist 50 years ago) Today many of us are paying for IDENTITY THEFT protection. (that didn't exist 50 years ago) Today we're so spoiled, and want it now, that we buy things with credit cards instead of saving for purchases (that didn't exist 50 years ago) The problem is ... we're spending more. LOTS MORE

Our cars have more gadgets. Our homes have more gadgets. Our selves have more gadgets (cell phones, ipods, memory sticks with who cares what on them) All this STUFF takes money. All this STUFF takes hours of labor to make the money to buy the stuff. And the worst part is that much of this stuff is combined with some type of monthly service, so that you can pay more money ... every month ... to maintain your stuff. All this keeps you preoccupied and inflation takes a back seat in your mind, until 1 day, you see a price tag and 10-20 years of inflation hits you all at once ... HOLY COW ... LOOK AT THAT PRICE !

It's a sure sign that you're out of touch. It's time to sit back, look at how much you're making today, compare to 20 years ago, and look at how many hours did you have to work then, and how many hours do you have to work today, to buy the same items.

It's time to take a reality check, and update your ideas of what things really should cost.

Like it or not; oil ... IS ... going to get more expensive. Not just by inflation. The rule of supply and demand is also starting to take effect. The whole world is starting to demand more oil. (Especially Asia) Unfortunately, it's at a time when the supply of oil is starting to dwindle. The price of oil is going to increase faster than the inflation rate. Get over it now. That's the future. Get used to it. Plan for it. Get ready for it.

The future holds nothing but higher prices. But that doesn't mean things are going to be more expensive in terms of hours worked for an object. On the other hand; energy IS going to take more work hours to purchase. Like you; in the short run, I don't like this either. HOWEVER; I do believe that this will be a good thing for our planet. It will make people conserve. It will make renewable energy sources more affordable. And these things will be good for the planet. Maybe not your wallet. But good for the planet. It's not like we can just move next door when things get ugly on Earth. We must consider the larger picture.