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Some people say the reason for the high inflation now is because of the pandemic and other people say because of the US government have been printing way too much money over the years and the US debt is out of control.
So what really is the main reason? I hear Europe also is experiencing high in inflation just like Canada and Mexico.
This inflation is getting out of control and getting worse every month.
Mostly shortages in everything …..labor shortages are driving up wages …chip shortages for cars are accounting for one third of the increase in the cpi as prices of new and used cars soar
I think that it is a complex thing that involves stuff happening in multiple countries all over the world.
If certain products are produced in another country, then that country's policies (lockdowns, hostile acts against segments of their own population, you name it) will affect production...and then there is the political relationship between the country of supply and the country of demand. Then you get labor in the country of demand, with regard to transportation of goods and endpoints of sale. Plenty of room for disruption there. Then there's the movement of money in terms of Big Capital (as I've taken to calling it) which means all of those sources of investment money that could be moved to various markets, and some of the sources are legit, some are not. When political administrations choose to change the handling of the more shady sources or sources from certain other countries, effects ripple downstream.
But in some cases, things that happen in a really big market (like US demand & investment) will cause effects that touch many other countries' economies. And political instability is bad for business. It just is.
Personally, I think that a sensible way to approach inflation at the US national level is to start at the biggest areas of expenditure for most consumers. If people have breathing room in housing, healthcare, mobility, and care for children and elders, then they can more easily have some agility to cope with market conditions for consumable goods. You can choose to pursue bargains and make different choices when it comes to food, for instance...you can take steps to be more energy efficient and lower your utility bills... But it's a lot harder to change your housing situation, people with children have to make sure that the kids are cared for one way or another, and when you need healthcare, you need healthcare.
But what I find frustrating is that in the US, the side that seems to want to do things to help, does not go about it in ways that work. This is everything from refusing to push legislation around the obstructionists, to bringing bills to the table with the old standard of "lots of room for haggling"...but little understanding of the urgency. We don't have time for these games. And it hardly serves to craft a massive bill full of things you are ready to give up, when your opponents don't want to bargain, they just want to stop everything and anything you want from happening period, until the clock is run out and you lose the ability to do anything at all. Different tactics are needed. So Biden wants to help in areas of child and elder care, for instance, but it does no one any good if it's bundled into one of these big fluffy bills that land as DOA in Congress just because Republicans see it as "whatever Dems want, we kill automatically."
I think that changing the filibuster to the old talking one would help. Then at least if anyone really wants to stop something, they'll have to put in some effort to make it happen.
These things are all connected. It is many factors, from the psychology of working age Americans, to international politics, all converging to pressure markets.
I'm interested to see what happens when the Fed raises rates. I can think of possible good and bad effects of that.
Another point to be made is that even in the US alone, inflation is not hitting everyone equally. I live near Phoenix, and I have easy access to groceries at probably a dozen different locations within a 5 minute drive. I'm not seeing consistent shortages, and prices have not gone up so dramatically that I am feeling a big effect from it. My Mom lives in rural Oklahoma, and she just told me that she is seeing both serious shortages AND significant price increases. I think that it's the difference between living near a big city (a big hub for deliveries) and living in a rural area. What she is seeing probably has a lot to do with trucking issues. (EDIT - But she bought her house for $50K. So...)
shortage of goods-components,parts,whole goods,shortage of labor to deliver ,make goods.
climate makes a difference too,freezing in Florida,draught in California
Some people say the reason for the high inflation now is because of the pandemic and other people say because of the US government have been printing way too much money over the years and the US debt is out of control.
So what really is the main reason? I hear Europe also is experiencing high in inflation just like Canada and Mexico.
This inflation is getting out of control and getting worse every month.
Quote:
*Inflation is a measure of the rate of rising prices of goods and services in an economy.
*Inflation can occur when prices rise due to increases in production costs, such as raw materials and wages.
*A surge in demand for products and services can cause inflation as consumers are willing to pay more for the product.
*Some companies reap the rewards of inflation if they can charge more for their products as a result of the high demand for their goods.
Part of the cause was there was a high demand for products because of COVID; people were willing to pay up for products. Remember the buying spree on toilet paper? If the cost had been double, they still would've bought out the store.
Interest rates have something to do with it. That's why the fed will be raising rates starting this year, trying to put a curb on inflation.
There have been increased costs and demand due to the global pandemic. Lower production coupled with high demand. Add to that shipping/distribution problems.
Hopefully it'll slow down or few of us will be able to afford even basic things. If that happens, there will be less demand, so production companies will start laying off, which might trigger a recession (low inflation in recessions).
I think that it is a complex thing that involves stuff happening in multiple countries all over the world.
If certain products are produced in another country, then that country's policies (lockdowns, hostile acts against segments of their own population, you name it) will affect production...and then there is the political relationship between the country of supply and the country of demand. Then you get labor in the country of demand, with regard to transportation of goods and endpoints of sale. Plenty of room for disruption there. Then there's the movement of money in terms of Big Capital (as I've taken to calling it) which means all of those sources of investment money that could be moved to various markets, and some of the sources are legit, some are not. When political administrations choose to change the handling of the more shady sources or sources from certain other countries, effects ripple downstream.
But in some cases, things that happen in a really big market (like US demand & investment) will cause effects that touch many other countries' economies. And political instability is bad for business. It just is.
Personally, I think that a sensible way to approach inflation at the US national level is to start at the biggest areas of expenditure for most consumers. If people have breathing room in housing, healthcare, mobility, and care for children and elders, then they can more easily have some agility to cope with market conditions for consumable goods. You can choose to pursue bargains and make different choices when it comes to food, for instance...you can take steps to be more energy efficient and lower your utility bills... But it's a lot harder to change your housing situation, people with children have to make sure that the kids are cared for one way or another, and when you need healthcare, you need healthcare.
But what I find frustrating is that in the US, the side that seems to want to do things to help, does not go about it in ways that work. This is everything from refusing to push legislation around the obstructionists, to bringing bills to the table with the old standard of "lots of room for haggling"...but little understanding of the urgency. We don't have time for these games. And it hardly serves to craft a massive bill full of things you are ready to give up, when your opponents don't want to bargain, they just want to stop everything and anything you want from happening period, until the clock is run out and you lose the ability to do anything at all. Different tactics are needed. So Biden wants to help in areas of child and elder care, for instance, but it does no one any good if it's bundled into one of these big fluffy bills that land as DOA in Congress just because Republicans see it as "whatever Dems want, we kill automatically."
I think that changing the filibuster to the old talking one would help. Then at least if anyone really wants to stop something, they'll have to put in some effort to make it happen.
These things are all connected. It is many factors, from the psychology of working age Americans, to international politics, all converging to pressure markets.
I'm interested to see what happens when the Fed raises rates. I can think of possible good and bad effects of that.
Another point to be made is that even in the US alone, inflation is not hitting everyone equally. I live near Phoenix, and I have easy access to groceries at probably a dozen different locations within a 5 minute drive. I'm not seeing consistent shortages, and prices have not gone up so dramatically that I am feeling a big effect from it. My Mom lives in rural Oklahoma, and she just told me that she is seeing both serious shortages AND significant price increases. I think that it's the difference between living near a big city (a big hub for deliveries) and living in a rural area. What she is seeing probably has a lot to do with trucking issues. (EDIT - But she bought her house for $50K. So...)
I thought that your post made a good deal of sense until you got to the part about blaming the Republicans for not passing needed legislation. Perhaps you forget that the Republicans DID help pass an infrastructure bill several months ago that the Dems put forth even though it contained considerable pork and things that weren't really "infrastructure".
However, the provisions of this latest monstrosity are simply too much for even some of the Dems to swallow and the R's sure aren't buying it either. If the Dems will put forth reasonable needed legislation, then the R's will be on it like white on rice, but the R's aren't going to support the Socialist wish list of the Socialist wing of the leftist party. Hell, they can't even get all the Dems to support it.
And Manchin and Sinema aren't the only Dems that don't support it. They're just the only two that are public in their opposition. There are another half dozen Dems that are glad that Manchin and Sinema are willing to take the heat so that they won't have to.
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