My 10-Year-Old Understands Inflation Better Than Politicians

We've spent the last two weeks here in Paraguay, and yesterday was our last day.

My friend Markus took the whole family out for lunch.

We've been having an ongoing conversation about artists, as he's quite interested in the local art scene here in Paraguay.

Over lunch, we discussed the art itself, the artists, and quite a bit about the business of art.

My ten-year-old daughter was listening quite intently. She loves to draw and is incredibly creative, so naturally, the conversation caught her attention.

On the walk home after lunch, we were chatting, and I said to her:

"Hey, maybe you'll be a famous artist one day, and people will be discussing you and your work. Maybe we'll even hang some of your art in one of our hotels. You could create special pieces just for us."

Without missing a beat, she said:

"Yeah, we could make a contract for it."

But then she started thinking about it a little more...

"Although, if we make a contract now, we'll have to be careful because of inflation."

I looked at her.

"Really? Because of inflation?"

"Yeah, because if we write the contract now and I don't make the art for you for a few years, then the money will be worth a lot less."

Now she really had my attention.

"Oh yeah? How come?"

She started explaining that the cost of her materials would go up. Her paints, her easel, her canvases, and everything else she would need to produce the artwork.

So I pushed a little further.

"Well, where does inflation come from?"

She answered:

"The government, of course. The government prints more money out of thin air, and that makes everything more expensive because there's more money fighting for the same amount of paint and canvas and all the other goods in the world."

I was incredibly proud.

Here's my ten-year-old daughter, walking down the street in Asunción, Paraguay, casually explaining monetary inflation, purchasing power, and the economics of a long-term contract.

Meanwhile, there are millions of grown adults back in the West who can't seem to grasp these basic concepts.

Including, apparently, a good number of the people running the governments.

And let's not even talk about the socialists who think the solution to every economic problem is to have the government spend more money.

Where do they reckon that money comes from, anyways?

Apparently, that's a question my ten-year-old has spent more time thinking about than they have.

The funny thing is, she wasn't trying to impress me. She wasn't reciting something she'd memorized for a test.

She was simply applying what she'd learned to a real-world situation.

We were talking about art; she started thinking about contracts, and naturally, she recognized that inflation would affect what she should charge for her work.

That's what real education looks like.

Not memorizing a bunch of nonsense to pass a standardized test. Not sitting in a classroom being told what to think.

Learning how the world actually works, and then being able to apply that knowledge.

I told her she was absolutely right and how proud I was of her for understanding these things.

She was beaming.

And I was reminded once again why we're raising our children the way we are, travelling the world, exposing them to interesting people, real businesses, different cultures, and conversations that actually matter.

These are the lessons that will stay with them for the rest of their lives.

Now, speaking of art in Paraguay...

During our two weeks here, I've been sharing quite a few updates from the ground in our Telegram channel, including pictures of some of the beautiful Paraguayan artwork we've been acquiring for our new hotel project in Asunción.

We're working with local artists to commission some very special pieces, and I've been sharing a bit of the behind-the-scenes process.

If you're interested in following along with what we're building overseas, the places we're visiting, the people we're meeting, and the opportunities we're discovering, join me on Telegram.

Join My Telegram Channel Here

I share plenty of things there that never make it into these emails.