W. Edwards Deming: That’s Inflation

Meaning of W. Edwards Deming Money Quote: saying worker productivity shouldn’t decline and prices must reflect sufficient profit in pricing to avoid inflation. W. Edwards Deming said:
 

“Declining productivity and quality means your unit production costs stay high but you don’t have as much to sell. Your workers don’t want to be paid less, so to maintain profits, you increase your prices. That’s inflation” — W. Edwards Deming

In this quote, W. Edwards Deming is explaining how inflation can occur due to declining productivity and quality in business. He says that when productivity and quality decrease over time, a company’s unit production costs remain high even though they have less product to sell. Since workers will not accept lower wages, companies try to maintain profits by raising their prices.

Deming argues that this process of increasing prices specifically due to declining productivity and quality, which forces companies to charge more for goods and services to offset higher costs, is what leads to inflation at the economic level.

So in essence, the quote is attributing inflation to the price increases that result when businesses try to preserve profit margins facing internal inefficiencies like falling productivity, rather than lowering costs in other ways.

Birthday: October 14, 1900 – Death: December 20, 1993

Dwight D. Eisenhower: Sound Dollar

Meaning of Dwight D. Eisenhower Money Quote: saying stability of the dollar keeps prices acceptable and stops dwindling of assets. Dwight D. Eisenhower said:
 

 

“For every American this matter of the sound dollar is crucial. Without a sound dollar, every American family would face a renewal of inflation, an ever-increasing cost of living, the withering away of savings and life insurance policies” — Dwight D. Eisenhower

In this quote, Dwight D. Eisenhower is emphasizing the importance of maintaining a “sound dollar” or stable currency for all Americans. He argues that without a sound dollar with steady value, every family would experience a resurgence of inflation where the cost of living continually rises.

Eisenhower also states that unsound monetary policy would lead to people’s savings and life insurance policies gradually losing value over time due to inflation. His point is that inflation erodes purchasing power and the real value of people’s financial assets.

So in summary, the quote is asserting that a sound, stable dollar with low and predictable inflation is crucial for every American family’s economic well-being and security, as high and volatile inflation would negatively impact their cost of living, savings, and insurance policies by diminishing their real spending power and returns over the long run. Eisenhower sees maintaining a sound currency as vital to Americans’ financial welfare.

Birthday: October 14, 1890 – Death: March 28, 1969

Jacques Rueff: Inflation Expenditure

Meaning of Jacques Rueff Money Quote: saying inflation seems to magically make money disappear and at the same time cover subsidies. Jacques Rueff said:
 

 

“Inflation consists of subsidizing expenditures that give no returns with money that does not exist” — Jacques Rueff

Jacques Rueff is providing a concise definition of inflation in this quote. He is saying that inflation occurs when governments fund expenditures that do not generate any returns/productivity (such as some social programs) by creating new money that was not backed by real economic activity or asset reserves.

Rueff’s definition suggests that inflation stems from using unearned or nonexistent money to subsidize unproductive spending, essentially printing money to pay bills.

The quote conveys that inflation is the result of spending money that doesn’t really exist to finance programs and services that don’t add real value or returns to the economy. This definition characterizes inflation as artificial monetary expansion not aligned with genuine economic output.

Birthday: August 23, 1896 – Death: April 23, 1978

Elias Canetti: Inflation Identity

Meaning of Elias Canetti Money Quote: saying What is it that happens in an inflation? The unit of money, There in one’s hand, are no longer millions in fact, but only in name. Elias Canetti said:
 

 

“What is it that happens in an inflation? The unit of money suddenly loses its identity. The crowd it is part of starts growing and, the larger it becomes, the smaller becomes the worth of each unit. The millions one always wanted are suddenly there in one’s hand, but they are no longer millions in fact, but only in name” — Elias Canetti

Elias Canetti is describing the psychological and economic impacts of inflation through this quote. He explains that during a period of high inflation, each monetary unit (e.g. each dollar) begins to lose its fixed meaning or value.

As inflation accelerates and more money is printed or enters circulation, the overall “crowd” of money grows in size but the purchasing power of each individual unit shrinks proportionally.

Canetti suggests this means the large sums that people dreamed of accumulating are suddenly within their grasp in nominal terms, but their real economic value has diminished greatly due to inflation. So while the numbers may be larger, each unit buys much less.

The quote conveys how inflation can create an illusion of wealth as numbers rise but steadily erodes people’s purchasing power and savings in real terms.

Birthday: July 25, 1905 – Death: August 14, 1994

Hendrith Vanlon Smith: Inflate Costs

Meaning of Hendrith Vanlon Smith Money Quote: saying growing business income is necessary to cover growing expenses of inflation is critical. Hendrith Vanlon Smith said:
 

“It’s important to always keep the business’ assets growing. Inflation will make sure that expenses grow, so each business needs to make sure that it’s assets are growing to at least compensate for those inflationary pressures” — Hendrith Smith

Hendrith Smith is emphasizing the importance of continuously growing a business’ assets in order to counteract the effects of inflation.

The quote suggests that since inflation causes expenses to naturally rise over time, businesses must ensure their assets are also increasing just to maintain their existing value and purchasing power. Smith is advising that assets need to expand at least in line with inflationary pressures on costs, otherwise the business will fall behind financially.

The overall message is that stagnant assets leave a business vulnerable to erosion of profits and net worth from inflation eating away at the real value of their holdings. To stay competitive and profitable amidst rising prices, businesses must keep their asset base appreciating accordingly.

Hendrith Vanlon Smith Jr: Inflation %

Meaning of Hendrith Vanlon Smith Jr. Money Quote: saying One business expense many owners fail to budget is inflation. Hendrith Vanlon Smith Jr. said:
 

 

“You have to include inflation in your annual revenue and expense forecasts. You have to treat inflation as an annual fee your business pays into the economy. If inflation is 2% for example, that means the economy is charging your business a 2% annual fee and so you gotta make sure your income and total assets grow at minimum 2% annually just to keep up” — Hendrith Vanlon Smith Jr

Hendrith Vanlon Smith Jr is advising businesses to account for inflation when planning their annual finances and growth. The quote suggests that if inflation is at a rate like 2% in a given year, that effectively means costs across the economy are increasing by 2% on average.

Therefore, Smith argues businesses need to factor this “annual fee” of inflation into their revenue and expense forecasts to ensure income and total assets increase by at least 2% just to maintain the same purchasing power and profitability. If a business does not grow more than the inflation rate, it is effectively losing value and falling behind in real terms.

The overall message is that smart financial planning requires incorporating expected inflation into projections, as rising prices can erode profits if not properly compensated for through revenue growth.

William F. Buckley Jr: Inflation Policy

Meaning of William F. Buckley Jr. Money Quote: saying monetary policy solutions to inflation seems to exacerbate financial problems. William F. Buckley Jr. said:
 

 

“The inflation that comes inevitably with government pump-priming soon catches up with the laborer, wipes away any real increase in his wages, discourages private investment, and sets off a new deflationary spiral which can in turn only be counteracted by more coercive and paternalistic government policies” — William F. Buckley Jr.

William F. Buckley Jr. is warning about the negative economic cycle that can result from inflation caused by excessive government spending and intervention in the economy. The quote suggests that when the government artificially boosts demand through “pump-priming” policies like increased spending or lower interest rates, it initially leads to higher wages for laborers.

However, Buckley argues this inflation will eventually “catch up” to wages and erase any real gains as prices rise accordingly. He believes this inflation then discourages private businesses from investing due to uncertainty.

Buckley claims all of this sets in motion a deflationary spiral that can only be addressed through even more intrusive government policies and control over the economy. Overall, the message is that inflation spawned by pump-priming has unintended consequences and leads to a situation requiring ever-increasing government intervention.

Birthday: November 24, 1925 – Death: February 27, 2008

Margaret Thatcher: Robber Inflation

Meaning of Margaret Thatcher Money Quote: saying Inflation steals from savings accounts and brings unemployment. Margaret Thatcher said:
 

 

“Inflation is the parent of unemployment and the unseen robber of those who have saved” — Margaret Thatcher

Margaret Thatcher is suggesting that inflation can lead to unemployment and erode the purchasing power of savings. She refers to inflation as the “parent” of unemployment, meaning it often gives rise to job losses. When prices rise rapidly, it can cause economic uncertainty and reduce consumer spending, which in turn can force companies to cut costs by laying off workers.

She also calls inflation an “unseen robber” of savers, indicating that it stealthily diminishes the value of money that people have set aside in savings accounts or other stores of value over time as each unit of currency buys less and less.

So in summary, Thatcher is warning about the negative consequences of inflation both for employment levels and for those who have accumulated financial assets.

Birthday October 13, 1925 – Death: April 8, 2013