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Purchasing Power – This refers to the strength and buying muscle, ability and resources, (as measured by quantity/quality of products/services it can afford/buy. Where the real buying strengths, resources, control and command, ability, agility and procurement lie for and in the business. What is the ability to buy, pay for, acquiring, getting, assets, goods and levering firm footing surface and work best. Metric and indicator of financial success, stability and depth, indicator of the business’ wellbeing and prosperity, earnings capability. The metric, or measure of money-worthiness, value that can be purchased, bought and afforded, despite inflation that decreases purchasing power; and deflation that increases it. What are the financial means, position, status of possession of money and the recourse to credit, how much money can purchase what goods, inversed by CPI, for durable and nondurable goods.
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