Inflation is a beast. The so-called “cost of living crisis” has descended upon many Western countries and shows little sign of retreating anytime soon. Rising consumer prices are a minor nuisance for the wealthy but an existential threat for those living from paycheque to paycheque. Yet inflation extends far beyond steeper electricity bills or heftier totals at the supermarket checkout. Its implications for society are subtler, darker, and more pervasive than most realise.

Inflation is not a natural disaster but at its core, a simple monetary phenomenon: when more money floods into an economy while the supply of goods and services remains stagnant, prices climb, and the value of money dips. This triggers two effects: asset inflation, which pumps up the prices of stocks and property, quietly benefiting the haves over the have-nots, and price inflation, which drives up the cost of everyday essentials like food and fuel. While asset inflation widens inequality, it’s price inflation that hits hard and reshapes society in profound ways - a ripple effect this essay will explore.

Here are three observations on how inflation reshapes society in ways we often overlook.

1. The Decline in Food Quality

When production costs rise, food producers face a stark choice: increase prices (or reduce the size of products for the same price) or cut corners with cheaper ingredients. This isn’t merely an inconvenience - it’s a burgeoning health crisis. Lower-quality food leads to poorer health outcomes, contributing to societal ills like rising obesity rates and chronic disease.

For centuries, the most coveted foods - often high-quality animal products like grass-fed beef, wild-caught fish, fresh yoghurt and milk products -were prized for their nutritional value and taste. Today, inflation renders them unaffordable for many. Without diving into the debate over whether plant-based diets are inherently healthier than meat-based ones, it’s undeniable that a grass-fed beef burger from a local farmer costs far more to produce than a pea-protein patty churned out by an industrial production company. As inflation squeezes budgets, the cheaper option is increasingly promoted as the better one.

This raises a troubling question: are modern dietary guidelines and health beliefs truly rooted in wellbeing, or are they a convenient justification for promoting cheaper alternatives? Through the lens of inflation, one might wonder if we’re being sold a narrative of “health” that’s more about disguising costs than enhancing lives. The rising cost of infrequent purchases—like furniture every few years or a house, a once-in-a-lifetime buy for many—can often be masked or absorbed. But historically, it’s when basic nutrition becomes unaffordable that the masses take to the streets.

2. The Erosion of Service

In the “good old days,” quality service was a given - part of the package when you bought a product or dined out. Modern society, however, has ushered in business models where consumers increasingly shoulder tasks once handled by staff. Self-service kiosks at restaurants, online-only booking systems, and automated check-ins at hotels and airports are now the norm. Gone are the days when a smiling employee guided you through the process; now, you’re left to fend for yourself.

Is this shift genuinely better for consumers, empowering us with “control,” as some claim? Or is it simply a cost-cutting measure dressed up as progress? Inflation plays a key role here. By offloading labour onto customers, businesses reduce overheads - a necessity when rising costs threaten profit margins. In this way, inflation transforms you from a valued customer into an unpaid member of the service team.

3. Cheaper Materials, Diminished Quality

Older generations often lament that “things aren’t made like they used to be.” Cars were sturdier, appliances more reliable, and furniture - crafted from solid wood by skilled carpenters - lasted for generations. Contrast that with today’s world, where a leading Scandinavian furniture retailer thrives on a model of affordable, self-assembled (return to #2) products made from pressed chipboard rather than hardwood.

Through the lens of inflation, this shift makes sense. As production costs rise, manufacturers turn to cheaper materials and streamlined processes to keep prices palatable. The result? A throwaway culture where durability is sacrificed for affordability. The old folks might indeed have a point: inflation doesn’t just shrink your wallet - it erodes the quality of the world around you.

A Broader Perspective

The cost of living crisis is the most visible symptom of inflation, but its tendrils reach deeper, reshaping society in ways that aren’t immediately obvious. Devalued money doesn’t just mean higher prices; it influences the food we eat, the services we receive, and the durability of the goods we buy. Once you grasp inflation’s consequences, it’s impossible to unsee them.

Peer through the lens of inflation, and the world shifts into focus: scattered frustrations and quiet declines - things we scarcely notice or connect -start to form a pattern, hinting at a deeper thread running beneath it all. Perhaps there’s a way to step back from the tangle.

Study Bitcoin.