How Does 'Basic Economics' Explain Inflation In Simple Terms?

I happen to come across a popular post regarding a company's finance department on social media. "Seriously, that person in the sales department is such an idiot! All I wanted was to claim reimbursement under her name for the bag I bought, and yet she still refused! "Since she doesn't want me to reimburse my bag, then she can forget about reimbursing everything! This time, I'll teach her a lesson about what happens when she offends a member of the finance department!" There are many bashing comments in the comment section, but the original poster doesn't care at all. She continues adopting a haughty tone. "What am I scared of? The finance department is extremely vital to the company! I refuse to believe that the boss has the courage to offend me, the most important person alive, just to stand up for a sales employee who's easily replaceable!" As I stare at the familiar profile picture belonging to the original poster, I can't help but mentally sneer. She wants to suspend all of my reimbursements, huh? Go ahead, then! This time, I'd like to see what the consequences are for offending a member of the finance department!

After ten years studying interior design overseas, I came back to my hometown to do work that mattered to the people who raised me. I offered the full package, from site survey to soft furnishings. The materials were chosen by hand. The price was fair to the bone. The town had just gone through a redevelopment. Everyone was getting new units. With the new family policy, every family wanted a third bedroom too. My business was good. Customers from the next county were driving in. Then a girl just back from a city college kicked open my studio with her phone on a livestream and her neighbors at her shoulder. "This is the dishonest one. Look at her. She has been ripping the village off." "In the city, an eighty-square-meter unit can be done for twenty thousand dollars. She is charging eighty." "That's a sixty-thousand-dollar margin. Sixty thousand. Right out of our pockets." The village fell in line behind her. They demanded the difference back. When I refused, they smashed my studio. They beat me into a coma. The pile-on online killed me. When I opened my eyes again, I knew exactly what I was going to do. I would refund every single one of them. And then I would tear out every single thing I had installed. Let's see what twenty thousand dollars actually buys you.

The company had been losing money for two consecutive years. That year, with our biggest client suddenly going out of business, we lost nearly ten million dollars in receivables. On New Year's Eve, I sent out a company-wide apology email after much deliberation. The email stated, "At this moment, I regret to inform that we can only increase each employee's monthly salary by 20 dollars this year." An intern named Ingrid Little took a screenshot of the email and posted it online. In no time, her post started trending. The entire internet criticized me for being fake and pretending to be poor. They said that my shameless act was a blatant insult to my employees' hard work. "20 dollars doesn't even cover commuting!" "Why hasn't this garbage company gone under yet?" Ingrid replied to each comment with the same line: "I don't care about the money. I just feel insulted. I'm quitting tomorrow." The next day, I walked into the office with bloodshot eyes and turned on the company-wide broadcast. I announced, "Since some people believe I've insulted their dignity, you may submit your resignation immediately. However, you will no longer be entitled to the year-end bonus of 20 thousand dollars." Everyone gasped in disbelief. Ingrid turned completely pale, and some workers even rushed into my office impulsively. "Boss, this has nothing to do with me! I stand with the company!" After all, my company had increased salaries for 37 consecutive years and given an average raise of over 2,000 dollars each time. They wouldn't find a company like mine elsewhere.

"You guys know what the situation is like in this industry this year. I need to cut our end-of-the-year bonus by half in order to overcome this difficult period." My boss, Peter Hurley, claims that things are difficult in the industry right now, yet his wrist still showcases the luxury watch that he's just bought. My 20,000-dollar bonus is reduced to 700 dollars. In addition, I also received a plaque that says "Award for Outstanding Contribution". "This plaque is worth a lot, Soren. It represents the acknowledgement this company has for you. Don't be so petty when it comes to money." As I stare at the plaque in my hand, I can't help but scoff furiously. "Fine. I won't be that petty when it comes to money. I hope you won't be that petty either when you're paying next month's rent." Peter is stunned momentarily. "What do you mean by that?" I toss the plaque into the trash can. "What I mean is, I'm the landlord of this building. From next month onward, the rent will be increased ten times. If you refuse to accept the new rent, you can pack up and scram."

After half a month of nonstop overtime, I secured a contract worth over ten million, pulling the company back from the brink of collapse. My boss, Richard Gray, was overjoyed. At the celebration party, he called me the pillar of the company and announced that he would reward me with a bonus. However, when the end of the month came, and I opened my payslip, I froze. Negative 250 dollars. A negative commission? I actually owed the company 250 dollars? I immediately called the finance department, asking if there was a mistake on my payslip. They replied, "No mistake. This is the cost calculation formula that Mr. Gray personally instructed us to use. He said you'd understand once you saw it." I went straight to Richard for an explanation. He laughed. "The contract that you signed, after factoring in the concessions, upfront resources, and hidden expenses, left the company with a net loss of 150 thousand. Since the loss was due to your personal decisions, you're responsible for five percent. That totals to 7500. "Considering how hard you worked, we deducted it from your base salary first. But your salary wasn't enough, so you still owe the company 250. Don't worry. The company treats its employees well. We'll write that off." Soon after, he awarded 100 thousand dollars to the newly arrived intern. I watched the newcomer, probably connected to Richard, cheerfully treat the entire company to dinner with her bonus, and something inside me just snapped. From that day onward, I did the bare minimum. I clocked in. I clocked out. Nothing more. Later, when a critical project went catastrophically wrong and the company faced a colossal compensation demand, Richard came begging me to fix it. I just smiled and said, "Sorry, Mr. Gray. I've already resigned. If there are any problems, you can ask the intern who got the 100 thousand dollar bonus to handle it."

After my dad has retired, I give him 5,000 dollars for his living expenses every month. Coupled with his monthly pension of 2,000 dollars, I thought Dad would be living a great life back in our hometown. Little do I know that the hospital calls me the next day, telling me that Dad has fainted from low blood sugar due to starvation, which leads to him getting sent to the ER. I'm stunned, to say the least. How can Dad starve to the point of getting hospitalized when he's living off 7,000 dollars per month? So, I rush back to my hometown overnight. In the ward, Dad is all skin and bones. He's lost so much weight that his cheekbones can be seen protruding. The moment he sees me entering the ward, he tries to get out of bed. "I want to get discharged! I'm not staying in the hospital! I don't have any money to get hospitalized!" I quickly stop Dad. "Dad, you get 7,000 dollars per month! Why don't you have any money at all?" He glares at me hatefully. "I don't have 7,000 dollars per month! Every month, you give me 200 dollars! You even stole my pension from me! As if I have any money to get hospitalized right now! "If not for the fact that I got up early just to rummage for junk over the past few years, I'd have died of starvation a long time ago!" Everyone in the ward turns to look at me. Meanwhile, my mind goes blank. The thing is, I do give Dad 5,000 dollars every month. I really want to explain the truth to Dad, but he's already crying about how I've kept his money for myself. He also claims that I don't care about him when he gets sick, and that I'm a total ingrate. Someone has recorded the whole outburst. Naturally, the tagline "Ungrateful Son Keeps Father's Money All to Himself" goes viral the next day. My name, my workplace, and my address are quickly dug up by the angry Internet users. Someone even goes so far to splash red paint onto my front door. Because of that, I get fired from my workplace. My landlord doesn't hesitate to kick me out as well. Feeling very dazed, I walk on the street, only to get hit by an incoming truck. When I open my eyes again, I've returned to the day I transfer the 5,000 dollars to Dad.