Inflation is good for business

For years inflation has been viewed like an unwanted sixth toe – menacing and useless – but when prices are increasing, business owners really should rejoice. After all, inflation is good for business both big and small, as argued by business owner and Business Week columnist Gene Marks.

Business owners like growth, as it is usually accompanied by more sales, and higher prices. Too much inflation is undesireable yes, but a healthy annual dose, 5 or 6 percent say, ain’t so bad. Deflation, on the other hand, is bad, really bad. Deflation literally means negative inflation and that means prices go down. A sustained decrease in the price level would indicate lower demand for business products, and no business owner wants to sufffer lowered demand.

So Marks states his case for inflation, and why businesses need it to stay afloat.