by josuter March 2026

The price of a basket of Goods and Services (G&S) creeping up daily is a sign of inflation that is out of control.  Shopkeepers and business owners are trying to keep ahead of the inflation curve.  They are the ones who decide how much to raise their price.

A surplus of available cash for a limited supply of Goods and Services (G&S) is the primary cause of inflation.  If consumers have enough money, it becomes a seller’s market because the seller can demand and receive the higher pricel – but only if there is enough money.

In order to keep commerce flowing, central banks and treasury departments “print” or inject more money into the system.  This is done easily by selling or giving large sums of digital money to big banks who turn and loan this money to businesses and individuals.

Is this the best way to run an economy?  Injection of money could be done directly to the consumer in exchange for the consumer’s effort to help keep down the rate of inflation. Define a region – maybe a zip code area – with enough people to get an accurate estimate of prices of G&S. In order to keep inflation down, the people of that region must ask their business owners and shop keepers “What can we do to help keep down your costs so that you don’t have to raise prices?” 

If prices remain stable in that region, as measured by a basket of G&S, then people in that region will get a check from the treasury and can use that money to pay off debt or put into savings.  As long as their basket of G&S remains stable, some of this money can be spent.

This method needs an accurate estimate of inflation with a realistic basket of G&S that might be purchased by someone in that region.  Computers can do this.  “Bonus checks” can be pro-rated based on % of inflation avoided. This method creates a more stable system and creates an incentive for consumers and business to talk and plan together.