Meanwhile In Economics
Recently, in a New York Times article that outlines the current inflation rate; which is at 1.2% and has been slowly rising like a sloth in the Amazonian jungle.
The New York Times article stated, that the federal reserve has worked for decades to suppress inflation and that Janet Yellen, the presidential nominee to lead the Federal Reserve next year stated in the article that,”Rising prices help companies increase profits; rising wages help borrowers repay debts. Inflation also encourages people and businesses to borrow money and spend it more quickly.”
Experts also said in the article that low inflation is not good for the economy because very low inflation increases the risks of deflation. However the outcome for increasing profits for larger business entities.
In a Hobbyist’s Opinion
However, the price of a product is everything thing to anyone that is a hobbyists, both non-traditional and traditional, though raising the inflation rate could be damaging or beneficial to the hobbyist community. One has to understand that a majority of the products today are much more expense than what they used to be.
I asked Lynn Schober, an employee and particle owner at Jadeco Hobby shop in Stevens Point, for his opinion about the Federal Reserve raising the current inflation rate from 1.2% to 2%. He thought that it would be a not be a good idea and that it will probably impact the hobby. Schober has 45 years as a veteran hobbyist and he has seen the rise and fall of prices in the hobby industry.
“What used to be a $20 dollar model, is close to $60 now and the 1/32nd scale stuff, bigger planes and stuff like that are $150,” Schober said, “who can afford that?”
Schober states that prices of products in the scale hobby such as: military planes, trains and automobiles, as well as board games have gone up over the years. Making it very difficult for people in the traditional gaming hobby to buy certain models and games.
“We see a lot of people that come and look and say, ‘Oh man, I love this, but its going to take me 6 months to be able to come up and buy this,” Schober said, “I know a lot of our games, were people get together for a small gaming group and will pool their money to be able to buy a game, because they just cannot afford it.”
Halfway through interview with Schober, a couple had walked in and wanted to purchase a game called, Lord of the Rings Stratego, but did not have enough money to purchase. The price of the game was $100, due to its rarity. The intensity of the young couple’s gaze was similar to anyone who has ever wanted anything in their life. After brief exchange with the couple, Schober told them that he would go down to a more affordable price. The couple was relieved and then promptly left to return later with the money.
After witnessing this event, Schober stated that what had happened was perfect example of what was happening to hobbyist.
“If everyone had an extra $50 dollars in their pocket, I could make $1000 a day,” Schober said, “because people could come in and make the impulse buys. Impulse buying is down, way low. So yeah, it’s hurting us a lot.”
- Inflation: Is it Affecting Traditional Gamers? (morganzwart.wordpress.com)
- How do they calculate inflation? (mercedescoleman.wordpress.com)
- An inflation ‘floor’ could put off rise in rates, Cleveland Fed paper suggests (blogs.marketwatch.com)
- Is a Money Market Savings Account an Effective Hedge against Inflation? (ally.com)