Are YOU feeling the inflation yet? No / Yes I do! Mostly at the grocery store. Beef prices. Smaller packages. Gas station too. https://www.yahoo.com/news/one-way-companies-concealing-higher-104326057.html One way companies are concealing higher prices: Smaller packages June 1, 2021 Consumers are paying more for a growing range of household staples in ways that don't show up on receipts - thinner rolls, lighter bags, smaller cans - as companies look to offset rising labor and materials costs without scaring off customers. It's a form of retail camouflage known as "shrinkflation," and economists and consumer advocates who track packaging expect it to become more pronounced as inflation ratchets up, taking hold of such everyday items such as paper towels, potato chips and diapers. . Yes, I feel it. No surprise to me. I expected Biden Democrats to create inflation. Moi Support The Two Wall Solution Across an immense, unguarded, ethereal border, Canadians, cool and unsympathetic, regard our America with envious eyes and slowly and surely draw their plans against us.
Surprise, surprise! With trillions of American/Canadian Dollars and Euros printed, what did you expect? Keynesian economics. Someone has to pay the bill and it will be the little guy.
This isn't true inflation so much as it is a supply shortage brought on by industries that were slowed or stopped combined with many businesses stocking up to reopen. Things will recover. This was always going to happen and would be happening even if every Republican had won reelection in the fall.
Disagree! It is the product of gov't spending without funding like those "free" stimulus checks. Certainly there are other reasons for an inflation event but, this one I blame gov't spending without funding. Moi
Nah. That's what critics of the stimulus packages want it to be about, and it may even be a factor, but it's not the driving factor. Supply shortages are the driving factor. When supply is low and demand is high, prices increase. It's really that simple. Supply is low because industries were shut down and demand is higher because states are opening back up.
hmm, prices go up, people have to cut back; what is it if not inflation? Take off your Democrat voting hat and face the facts
Let me better state what my point was. This is not inflation driven by the stimulus packages. It is driven by the shutdowns, the reopenings, and ways that spending were readjusted due to both. There are those who sincerely want this to be caused by the stimulus packages, the I-told-you-soers, but they are wrong here. At least more wrong than right anyway. Take off whatever hat you're wearing that's clouding your vision and face the facts.
We are experiencing (mostly) supply side inflation: basically too few goods being chased by too much money. Factories are not expanding because it is felt to be temporary, much like the shortage of toilet paper and sanitizers. They are happy to operate in the “goldilocks zone” of inelastic pricing and fixed labor costs. (No one getting raises) Transportation area silent addition to demand side inflation.
inflation is inflation, you cannot pick and choose a reason it's here whether you are correct or not. Who cares if it was lightning or arson, the building is still on fire.
The reason for it matters, as the reason for it depends upon how bad it will get. Inflation caused by supply not keeping up with demand can be lowered over time. Inflation caused by an inflated money supply is far harder to deal with
Artificially suppressing employment to cause supply shortages is at the feet of the government. This is not anywhere near a normal economic cycle, and it is being encouraged by rising prices which feeds into the idea that wages should rise on a permanent basis on a 'temporary' (artificial) labor shortage.
Very true. That too can be fixed. I think employers are finding out an employees true worth right now. There is an old saying in sports, the more important ability is availability. I am not a business owner, but if I were I would find a way to reward those that have come back or been hired during the extra UE money. Not so much those that wait till they have sucked every dime from the Govt first.
I think that is an idealized view of the employee/employer relationship. You do have key people, and you do your best to keep them. Employees get a steady hourly wage, you get what is left over. They clock in, do their job and clock out. They are mobile and you are not. When they leave, it’s one more headache to deal with. One of the best retention tips: make accommodations for their kids sports, and other after school activities, allow as much flexibility as you can. The squints call this “psychic income.”
Perhaps so. I have never been a business owner, but I have been a manger over employees. Finding ones that will show up regularly is a chore. Those that could be relied upon to show up every time they were on the schedule were invaluable. The hardest worker while at work is useless when they miss more days than they show up for. This is one of the main reasons I went back to school and got my Masters and now only have to worry about me. This I agree with. I was this way, would change schedules whenever possible, even making it a bit harder on myself. A boss I once had asked me why I did that and I told her that a happy employee is a good employee. She literally laughed out loud at me and asked me "who told you that nonsense?".
As to 'true worth', it is only worth what the production can be sold for. Prior to the government shutdowns, many smaller businesses were already paying higher wages due to lack of available workforce, but that was not an artificial lack of labor, as it is now. Prices will continue to rise because of the government throwing more taxpayer funds at society.
I guess that depends on the product and the skill level to produce it. Burger King is hiring at $10 p/hr right now. A few miles up the road, $10 an hours is so yesterday, $11-$12 for a starting rate, unskilled, as in first job still in high school unskilled.
. Fortunately, I early retired at the height of the American empire and have no need to consume much. .
Lets all try to understand exactly what the mainstream definition of inflation is so that we can be clear about what is going on right now. Most of us think of the following scenario: 1. People want to buy X. 2. The supply of X cannot fill the demand by the people. 3. The people compete with each other to drive the price of X up. 4. As long as there is more demand than supply, the people keep bidding up the price of X. Now two things about this scenario. One is that it assumes that there is no more capacity to supply X at greater numbers to drive the price down. Two is the assumption that the only reason people can bid the price up is because they have too much money, if they had less money they could not drive the price up. In very simple terms, this is how most of the world looks at inflation. Staples and the basics of life are all subject to supply and demand variables. The amount of money in the hands of consumers is also a variable. If the supply chain is disrupted for any of these basic items that all of us need, the price will go up not because all of us are on Ebay bidding up the price of a gallon of gasoline but because the producers of that product know they can charge more up and down the supply chain and get away with it. That is exactly what happened when OPEC was created in the 70s. The reality of a macro economy like ours is that none of us really control the price of anything, it is set for us by massive forces far beyond our control. Remember Ned Beatty's speech in Network? It was true then and true today.
I remember years ago I could buy a 16oz bag of beef jerky at Wal-Mart for $10. Later on, $10 would buy a 12oz bag and today it will buy you a 10oz bag. It's been happening for years and it will only get worse.
The FED and ECB nave targeted inflation around 1-2% per year, if I am not mistaken. In 20 years that's a lot of inflation.
Well the reasons for that increase are varied. The end result is what people think of as inflation but maybe its nothing more than everyone in the supply chain just started charging more or wanted more dough for what they did. Is that inflation or just people wanting more dough?
https://news.yahoo.com/inflation-accelerates-5-4-may-123100927.html Inflation accelerates to 5.4% in June as overheating fears swirlConsumer prices increased 5.4% for the year ending June, according to a report by the Department of Labor. Forecasters had expected a 4.9% increase. . . I feel it at the grocery store. Moi War make a vibrant economy
Yes, not just inflation but shortages. I have been wanting to build a new computer system for months now. The GPU shortage and the extortion like after market prices are crazy. Damn those Crypto miners!
My computer geek uses Costco or Amazon. Meanwhile, Interest Rates need to rise. I miss Greenspan economics & responses. No Sympathy for borrowers. Sympathy for "savers" who witness the purchasing power of their savings fall over time from deposit to use. I keep an old bank book around for laughs In 2008 4.64% , , APY 4.75% Today less than one! The RepubloCratic Economy fuels "credit". Not Good to fuel on "credit". Who pays when failure occurs? Yup! We The People.Criminal CEO's , CFO's persons hiding behind "corporate shields" don't pay via real fines + Jail Time. Just their stockholders. Like my retirement account Connected persons manage to sell theirs before the failure. I am a Southern Californian who still expects his Enron refund. Meanwhile, convicted Ken Lay, died at home and not prison. Moi Viva La Revolucion If oligarchy don't get it! Break The NEWS Monopolies!