Why I think this is happening:
1. Look at the personal savings rate. Consumers have a lot of money
1. Look at the personal savings rate. Consumers have a lot of money
https://twitter.com/xuchuanmei/status/1454538424778514435
2. Look at labor force participation rate. It would be even lower if people didn't die from covid in large numbers.
3. Look at CPI
Put all of them together:
1. Really high savings!
2. A lot fewer workers!
3. Prices have gone up a bit
To answer the question: prices have not gone up enough to deter extreme demand relative to supply so that is why we are seeing shortages...
1. Really high savings!
2. A lot fewer workers!
3. Prices have gone up a bit
To answer the question: prices have not gone up enough to deter extreme demand relative to supply so that is why we are seeing shortages...
Once prices absorb the disgusting waste created by this, demand *should* come back to normal levels relative to supply and we won't have crazy shortages (that is unless we go into a psychology-driven inflationary cycle).
/end thread
/end thread
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