The Value of a Dollar

The Value

of a

Dollar BY LISA S.T. DOSS

Grandparents love to reminisce about the cost of goods and services in the good ol’ days. Sentiments such as, “I remember when the cinema cost a nickel” and “In 1965, I made $6,000 a year and only paid 30 cents for a gallon of gas.” Have you ever wondered why prices are drastically more today?

THE POWER OF INFLATION It may be a cliché, but the dollar doesn’t buy nearly as much as it once did. In 1913, it had the same buying power as $26 in 2020. The cause is inflation, which impacts the price level of an economy over time. Lengthy wars, the increase in printed money, periods of drought, and rainy seasons all contribute to the purchasing power. Throughout history, we can see the reason behind soaring prices. And, when there is more supply than demand, prices fall.

Three separate factors create inflation.

1. An increase in demand for products and services. 2. The constraints on available supplies for goods and services. 3. An increase in the amount of money printed.

While the first two examples impact the rise of costs based on availability, the third example results in the devalued dollar. Why? Because there is much more money in circulation. As the dollar value falls, it drives prices higher and increases the standard cost-of-living!

THE ROLE OF FARMERS In 1960, fewer farmers sought the ways of agriculture and they gravitated to the big cities to earn a living. Forty years later, only 1.9% of the population provided food. As the total number of farms and primary producers shrank, larger farms increased. Specialized machines, computers, drip irrigation, and heirloom seeds improved the old ways. Surprisingly, what popped up at a 200% increase was new produce, previously not grown in quantity. On an acre of land, farmers became micro-farmers, or grew strawberries, blueberries, watermelon, or cantaloupe.

THE DESIRE FOR COFFEE Before pre-packaged and frozen foods, the staples were simply bread, milk, eggs, and coffee. The one commodity desire that hasn’t changed is a deep love of that rich aroma. In 2008, an economic slowdown impacted many chains; instead of blaming the economy, one coffee company sought to focus on its customer base. Over 5.5 million people typed out comments on social media to improve the “brand” and create a welcoming sales environment. Yes, economics experts might say, why not brew a cup for pennies rather than pay over $5 for a mocha latte or a Frappuccino? That cost tends to add up, to approximately $4,500 a year. But when it comes to self-reward or social ritual, humans will opt to spend money for a pleasant experience.

THE SOLUTION

How do you combat inflation? First, begin to implement the following good practices!

• Consider investing in a currency that has a universal value and still performs well during economic depressions, such as silver or gold.

Keep watching prices! • Continue to support local farmers, growers, and ranchers. Invest time in growing fruits and vegetables. Even if you do not have a yard, you can start growing foods your family and you most enjoy! • Buy food items, such as canned vegetables, all-purpose flour, dehydrated fruits, in bulk. Having food on hand reduces the need to buy perishable products when prices rise.

Assess your current finances and determine ways to save on energy costs.

When the interest on money saved is lower than the inflation rate, it may seem pointless to increase savings; however, it’s still essential. Look into FDIC-insured bank savings and money market accounts.

Create a plan to pay off debt, especially bills with high interest!

Learn the ways of gas consumption. It takes up to 30% more gasoline to drive at 70 mph than 50 mph; so, start accelerating slowly after stops. Most importantly, keep your vehicle properly maintained and tuned.

Ask yourself the question, “Do I need to buy this now?”

Prices rise and fall. The best investment you can make is to stock up on pantry and paper goods, shop wisely, pay off debt, and save money.

What If?

presents Fuels and Storage

BY LISA S.T. DOSS

“What if?” the worrisome words, appear in the topics spinning constantly in our minds, from safety and financial security to loved ones and pet health. Asking, “What can I do?” leads to a proactive decision to invest time in the ultimate insurance policy—valuable life skills comprising security, shelter, food, water, and medical care! In any emergency, from extreme weather to a personal disaster, you have the power to take charge of your fate by making plans and taking action!

Our power grid and fuel stations are an accommodating source of readily available energy. Moreover, by paying a premium cost, sometimes monthly, the expectation is a working, uninterrupted system. But over the last year, homeowners and drivers were called upon to assess a range of substitute fuel options to accommodate their needs. The first thought was to obtain numerous containers to have on hand.

A Variety of Fuel Options

Did you know Crisco, Olive oil, and crayons can burn with or without a wick, and Pam Cooking Spray ignites to light a campfire? When fuels are in short supply, consider suntan oils, petroleum Jelly, Vaseline, and lip balms.

AVAILABLE FUELS: • Charcoal: By burning pieces of wood, eliminating impurities, the coal remains. (Try making your own charcoal with the use of a burn barrel and metal trashcan, hardwood pieces, and a fuel source.)

• Firewood requires six months to season and dry. Hardwood burns longer.

• Alcohol stove fuel is lightweight and designed for heating boats.

• Butane is a popular fuel for camping stoves, relatively light in weight, resealable, and offers easy connection to stoves and lanterns. (Does not perform well in cold temperatures and is non-recyclable.)

• Kerosene is odorless and offers an intense heat source.

• Paraffin lamp oil is smokeless and odorless. • Propane is odorless in its natural state.

• A layer of turpentine can create waterproof matches.

Storage

Designed from a heavy-duty plastic, most containers have a built-in handle, air release, and spout. Color-coding makes it easy to identify the array of fuels. For instance, gasoline containers are red, diesel is yellow, blue associates with kerosene, and white identifies propane. Off-road diesel requires a label written with a Sharpie marker. (Mixing fuels could be lethal!)

ADDITIONALLY: • Since fumes are explosive, a safe container is one that you do not smell.

Check your containers frequently, ensuring no leaks have occurred or vents popped open.

• Never store in your basement or garage; instead, contain, at minimum, 30 feet from the house. • All liquid fuels lose potency over time. For example, diesel can last 12 months if stored in temperatures below 70 degrees in an environment that is dark and cool. Higher temperatures, on the other hand, will degrade it within six months. Always label containers with storage dates.

• Fuel stabilizers prolong an engine’s life and offer a quick and easy start after storage. As an absorbent, it can prevent corrosion while cleaning carburetors and fuel injectors.

• Always use a funnel when pouring fuels.

What is Biodiesel?

Biodiesel, an alternative fuel type, is a viable solution to reduce carbon emissions. While most people connect biodiesel with vehicles, it can also be applicable in other diesel-based engines, such as in-home furnaces, generators, and fishing boats. • Petroleum Diesel: Petro diesel is sold at gas stations and suited for colder temperatures. • Biodiesel: Comprised of vegetable oil rather than crude petroleum, it’s a clean-burning alternative. You can find Petro diesel and biodiesel mixtures labeled as “B-factors.” B5, for instance, contains five percent, while B100 is 100% biodiesel. Find out what B-factor best accommodates your engine.

• Straight Vegetable Oil, SVO: Most restaurants with a high quantity of corn, soy, palm, and other vegetable-based oils left over are thankful to have individuals willing to extract barrels regularly. Conversions require a property-installed two-tank system, where oil is preheated and filtered. The concept of

SVO involves dedication and a commitment of time and money. In older diesel engines, the system can work flawlessly. Newer systems, however, will not accommodate biodiesel methods, limiting the operation.

Vehicle owners need to ask themselves if it’s worth it.

Warmth and mobility are vital topics to contemplate today, but not when you are without resources and cold; therefore, consider expense, storage, and availability in your plans!