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The New Age of Inflation in The Age of The Ubiquitous Super Computer

Updated on September 5, 2012

Inflation is not what it used to be. Thanks to Ubiquitous Computer Power and computerized pricing and inventory in businesses of all sizes. Inflation will beh

Inflation is not what it used to be. It used to creep on on businesses after the fact with markets attempting to anticipate the trend with large a large percentage of error in prices getting set too low for goods and services to keep up with inflation. It used to be that prices were hand stamped on items in stores using such high technology of the time as pricing guns. Once the prices went on items for sale they physically stuck to the items. Inflation could quickly make the old prices obsolete dimensioning profit margins before one's eyes . This happened ever so faster in countries that had double digit inflation such as Latin American countries. Companies have now changed the way pricing happens with prices being in computer inventories that are scannable, Now with cell phones also being scanning devices all prices can be scanned as opposed to printed and tagged which means prices can track inflation with great precision and potential buyers can monitor when they want to make purchases. There are profound implications to this new reality of ubiquitous computer power . It can already be seen in the commercial success of a company like Walmart that instantly change prices and they do this in stores around the world with different rates of inflation already. Walmart successfully can control inventory in a number of different countries simultaneously guarding their expected profit margin and monitoring the viability of retaining or restocking various sales items. It used to be that only a few stores had such computer power but now consumers also have it and it is becoming visible in the retail industry with Amazon.com overtaking companies like Best Buy in electronic sales because consumers can now check the Amazon price index before purchasing anything at best buy. That can work in the super market as well. In the near future your cell phone can scan super market shelves for bargain prices on automatic scan like a scan button on a car radio that can search for stations and automatically tune into them. The cell phone devices can also instantly google map where the bargains are possibly even in a store. Retailers and wholesalers will become instantly more sophisticated as computer inventory becomes even smarter and can correct every minute , every day and hour for inflation based on a variety of factors including volume of sales per item and location of sales melding into that information on where inflation trends and interest rates go on a daily basis on financial markets. The question is then what the effect of this ubiquitous computer power to digest and to instantly analyze information on prices , inflation, volume of sales etc will go? What I suspect it that once everyone understands how the technology works it will mitigate the adverse affects of inflation and that is because workers will also know the inflation trend and demand that their wages keep on on a minute by minute basis just as store inventory and pricing will. Once first introduced to consumers it could make temporary inflation worse by causing wholesale buy outs of perceived bargains accelerating prices in the future for the item. That could happen from time to time . More production as a result of expected higher prices can lead to what some might call demand relief with higher production causing lower prices as suppliers go crazy with added production having sold out. What will also happen is that producers such as gasoline manufacturers and distributors will use computers to regulate supply so they do not cause a glut on the market. It might be considered a form of anti competitive behavior except that all oil and gas companies having computers that analyze market conditions can do it completely independently without any conspiracy to fix prices.

If all computers are set to maximize profits all participants will probably profit. The same thing happens with consumers. If all consumers have computers that maximize savings when making purchases most consumers will maximize saving. Inflation might not even be noticeable once everyone has online computer currency. One danger does exist and that is computer and hyper inflation. Unlike hyper inflation's that went to billions or trillions computers can land prices into the zone of the billions of trillions and more. Banking is becoming completely computerized and real sphere of influence of dollars is as an increasingly online virtual currency where receipts are as good as paper money or coins or just the image of those recorded online or as registry items in bank account ledges.

What to expect with inflation in the future? It will probably become inflation that gives the government little excess buying power and that removes their reason to have inflation by devaluing the currency. It means less incentive for any government to use inflation to extend it's buying power. It maybe that data from countries with higher rates of inflation than the US are actually following this trend with inflation moderating in a number of countries where computer power is already in force.

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    • The Lex Blog profile imageAUTHOR

      The Lex Blog 

      6 years ago

      we are already seeing a deflationary effect because of the efficiency of computer power. Not only do computers power analysis they also power factories with less labor requirements than ever before.

    • ezeconomics profile image

      Ghualm Mohey-ud-din 

      6 years ago from Lahore, Pakistan

      Thanx for sharing such nice info

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