Inflation in America


Photo Courtesy of Nick Youngson

For those unaware of inflation, it is the decrease in an item or money’s value. Germany before World War II was in need of money so, consequently, they simply printed more. However, this was not the best idea as it caused not just inflation but hyperinflation. This means that, since there was an excess of money, the total value of a single Mark (German dollar) was drastically lowered. Put plainly, inflation is pretty bad. 

The United States used to have the gold standard, which backed up our currency with gold. This was generally good as it fixed values on a dollar. After complications with foreign countries, the United States dropped the standard, opting to use fiat currency. Fiat currency is essentially money valued on faith and trust from the government, not backed by gold or silver. Today, American society faces constantly growing inflation which begs a very peculiar question: what effect is it having on dollar stores?

A dollar store is where everything is priced at a dollar. However, this is getting tougher to operate with the increasing inflation. With the value of dollars falling, these stores are struggling to survive. Inflation has done many things to dollar stores that have tried to stay afloat in these turbulent times such as raising their prices over a dollar — sometimes to $1.25.

Inflation as an all-powerful force does not only apply to small, discount stores but also to big brand businesses as well. Many brands have adapted to this new environment by hiking up their prices — but one brand defies that. By the name Arizona Beverage Company, they hold the rights to the famous AriZona Iced Tea drink. Even more famous is their battle with inflation over said drink which has stood at ninety-nine cents per can since release. A long time has passed since the AriZona Iced Tea was released which has given inflation plenty of time to rise. Now in modern times, those old ninety-nine cents are worth a lot less which by common sense would be raised. Not with the Arizona Beverage Company which has held a firm stance against inflation, keeping their iconic drink at that constant price point. From internet memes to a public statement they held their grounds, unlike dollar stores which cracked under the pressure.

All in all, inflation has taken a hold of the United States as a whole with costs soaring. This is a serious issue as it has by a margin passed wage growth. This means that things will be harder to buy with tighter budgets for everyone — except when it comes to ice teas of course.