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Dilution is the Solution

Essay By: Juggernaut
Other



Inflation is good and dilution is the solution for many problems.


Submitted:Jan 21, 2012    Reads: 61    Comments: 1    Likes: 1   


Dilution is the Solution

Subba Rao

"People are hurting from low pay and joblessness; these days we cannot charge more for products and services" Dan was despondent.

"Dilution is the solution."

"How?" Dan scratched his head with four fingers as if he was combing his hair sideways with finger nails.

"Without cutting down the weight or volume, a product in a package can be diluted."

"How and with what?"

"With what else; water. "I notice recently, the toothpaste is more liquidly than before."

"Yes, I noticed it too." Dan agreed.

"Before, I have to press hard to get the tooth paste out of the tube; but now, I open the lid; it flows out almost like a loose semi-fluid." "The companies dilute the paste with water to stretch it; the weight in the container is the same but it has more water now and less of active ingredient, whatever it may be."

"Yeah, yeah, they think they are smart."

"The TV dinners are now more semi-fluid as if we were all on liquid diet now." "The chunky salsa is so liquidly, nachos cannot hold salsa anymore, the salsa flows out of the nacho chips." "We are not getting the value for the money with more water in the product; the companies were making more money through dilution."

"But in my business, how can I dilute my services?"

"Well, for the starters; make the customers work hard for service; put them on hold and make them fill forms; most people don't like paper work, many would drop out and don't pursue to get the service for free and then charge for a quick service."

"Yeah, I can do that; I will make a 3-page request form to get free service," Dan started getting ideas now.

"On top of it, because of privacy issues, ask every customer to fill a 2-page confidentiality form for any service request."

"That's sound clever."

"A product can be diluted and a fee can be charged for service; both serve the same purpose, more profits."

"With this idea of dilution as a solution, we can keep up and even increase the profit margin in difficult times like this," Dan looked satisfied.

"What you think is inflation?

"Jump in prices, right?"

"That is in layman terms," "In real terms, inflation is dilution; one would get less product or service for a higher price." Juggernaut looked more like a Professor of Economics.

"I will be darn; you are right Juggernaut; inflation is dilution, I love inflation." Dan looked excited with the discovery.

"In severe financial crisis, currency devaluation is also a dilution technique." "International Money Fund or IMF recommends countries in dire economic conditions to devalue their currency as a solution to their economic shortfalls."

"Is it not something I learned today," thought Dan loudly and started jumping up and down dancing around his desk singing "dilution is the solution and I love inflation."

Juggernaut went back to his corner desk to ponder further on the subject of dilution and was happy to bring a new meaning to dilution as a solution to Dan's economic problems.







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