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Old 05-07-2020, 05:55 PM
 
8,331 posts, read 7,505,974 times
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Quote:
Originally Posted by Mikala43 View Post
Some things are, like clothing. There was an article that a bunch of clothing companies were have HUGE sales.
Clothing stores have huge sales all the time.
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Old 05-07-2020, 06:00 PM
 
Location: Riverside Ca
20,903 posts, read 23,305,008 times
Reputation: 32207
Quote:
Originally Posted by Happs View Post
Why aren't prices on most goods and services rapidly declining during this pandemic? With high unemployment rates and low stock market indexes compared to January 2020, one would assume that consumers have less disposable income. It seems however that prices are holding steady to increasing.
Why would the prices drop? The demand is there there is no reason for the price to drop. In fact the price as you noticed can go higher because it’s pushed up by demand. Things may become unaffordable to some people but not all people

Now...........go book a cruise on a cruise ship. I bet you can get a week cruise for pocket change.


People seem to think because a lot of people are out of work then that equals EVERYONE is out of work which means prices will drop. Which is not true. There will still be a demand for basic living stuff at a minimum. Someone still has to make them. You still need food water lights clothes. Repairs to various things in a house car etc.

What I’m really waiting for is all the loud mouths who were waiting for a market crash to go ape on the stock market and housing. I’m betting they're biting their nails hoping they keep their job or wore out their fingers dialing the unemployment office trying to get through. Buying a house or making a killing in the market....is the last thing on their mind. And if I’m wrong....then I’m wrong and more power to them.
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Old 05-07-2020, 06:15 PM
 
2,012 posts, read 519,230 times
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Quote:
Originally Posted by Blinkerfluid View Post
Every recent tragic economic event has triggers that were predicted and ignored. what you are referring to are the political ostriches that failed us.
Nope. There has never been an economic change that some part of the spectrum didn't predict. Looking back and hand-picking them as being "right" is retcon nonsense.

The political ostriches are far more to blame for the inept, uncoordinated and self-sabotaged response to the pandemic itself. Economic fallout is secondary to that.
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Old 05-07-2020, 06:24 PM
 
Location: ATX-HOU
58 posts, read 16,435 times
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Quote:
Originally Posted by Therblig View Post
Few events can be accurately predicted even in a "stable" time. Which those who have learned the very basic rules of how a nominally free-market economy works don't get, hence the confusion that some imaginary, textbook response didn't happen. They rarely do. And those that "do" are often fitted into the theory as retroactive "proof" or validation, like any good fortuneteller.

Economics is half accounting and half behaviorism, and the vast precision of the former has no bearing whatsoever on the chaos of the latter. But give any expert a steady period and s/he will formulate endlessly detailed subtheory that matches exactly what's going on. Well, until something changes.

Sure, we humans are bound by limits and the models are are best guess based on the information. The "experts" are more useful than you seem to give them credit for in my opinion.
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Old 05-07-2020, 06:51 PM
 
Location: Dude...., I'm right here
1,360 posts, read 866,720 times
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Where have you been? For starters, have you seen the price of gas? Once the stores open, retailers will have to slash prices.


Quote:
Originally Posted by Happs View Post
Why aren't prices on most goods and services rapidly declining during this pandemic? With high unemployment rates and low stock market indexes compared to January 2020, one would assume that consumers have less disposable income. It seems however that prices are holding steady to increasing.
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Old 05-07-2020, 07:06 PM
 
1,910 posts, read 710,203 times
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Quote:
Originally Posted by Happs View Post
Why aren't prices on most goods and services rapidly declining during this pandemic? With high unemployment rates and low stock market indexes compared to January 2020, one would assume that consumers have less disposable income. It seems however that prices are holding steady to increasing.
Prices of goods cannot go below the cost per unit to produce.. unless it's a 'loss leader' or a going out of business sale.
If wages and raw materials plunge we could see deflation, but the Central Banks are working overtime so I'm not holding my breath.
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Old 05-07-2020, 07:28 PM
 
Location: Oregon, formerly Texas
6,385 posts, read 4,330,840 times
Reputation: 11088
Most recessions are caused by a drop in aggregate demand. A depression is more severe. Therefore time passes before prices drop.

I have noticed drops in some prices. Hotel rooms and Airbnbs obviously. Car insurance rates.

The time since the whole corona thing started hasn't been enough time for people to burn through their savings, and keep in mind there is extraordinary stimulus such as the $1200 payments, paycheck protection program, and small business loans. The last month is as if we've all been in our house during a blizzard. The people who are in distress are the poorest and least consequential consumers / investors in our population - low paid service workers and young people. Much of the white collar middle classes who have office jobs can do them at home. For now.

The market right now wants to believe things are going to snap back to normal, and is priced accordingly.

At some point, the reality of 30 million unemployed will come back down to earth.
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Old 05-07-2020, 10:00 PM
 
8,736 posts, read 2,428,842 times
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Quote:
Originally Posted by Happs View Post
Why aren't prices on most goods and services rapidly declining during this pandemic? With high unemployment rates and low stock market indexes compared to January 2020, one would assume that consumers have less disposable income. It seems however that prices are holding steady to increasing.

Depends. I made a 1000 mile drive this past week, local hotels gave me great deals. And gas is very very cheap. And my car insurance. I pay by the month. This month I will pay $5.
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Old 05-07-2020, 11:35 PM
 
7,823 posts, read 3,412,148 times
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Quote:
Originally Posted by Therblig View Post
Just maybe because real life/the real world economy isn't an Econ 101 whiteboard diagram.

Which will no doubt befuddle all the 'experts' who keep citing that text in increasingly frantic tones.
Why don’t you tell us all about how the current situation has somehow rendered the laws of supply and demand null and void, and how traditional economics can’t explain what is currently happening, let alone answer the OP’s question.

This should be rich. . .
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Old 05-08-2020, 12:31 AM
 
Location: Buckeye, AZ
31,293 posts, read 17,653,904 times
Reputation: 11359
Quote:
Originally Posted by Happs View Post
Why aren't prices on most goods and services rapidly declining during this pandemic? With high unemployment rates and low stock market indexes compared to January 2020, one would assume that consumers have less disposable income. It seems however that prices are holding steady to increasing.
It is because of demand. Unless you talk clothing, the majority of stores are selling food, cleaners and paper goods. I think the demand is the problem since now it is where any money is being spent. Even if we aren't talking a supply shortage like the meat plants... The law of Supply and Demand still exist, the issue is we have less options right now for our money.
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