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Old 05-07-2020, 02:16 PM
 
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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, 02:17 PM
 
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Companies need to generate higher profit sales to make up for all the lost volume..demand on many products increased and supplies are dwindling
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Old 05-07-2020, 02:18 PM
 
Location: Middle of the valley
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Some things are, like clothing. There was an article that a bunch of clothing companies were have HUGE sales.
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Old 05-07-2020, 02:28 PM
 
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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.
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Old 05-07-2020, 02:55 PM
 
Location: Heart of flyover America
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Because the only way that could happen is if the central banks and governments did all the right things ie no quantitative easing, no bailouts, no "stimulus," no further currency debasement. But not only are they doing these things, they're doing them far more aggressively than ever before. And this is just the beginning. We're going into an inflationary depression, which is so much worse than a deflationary depression. In a deflationary depression, people are destitute, but the COL falls shal sharply. In an inflationary depression, people are destitute and the COL goes through the roof.
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Old 05-07-2020, 03:55 PM
 
Location: ATX-HOU
58 posts, read 16,234 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.

This is a black swan event and by nature very hard to predict.
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Old 05-07-2020, 04:24 PM
 
Location: Northern Wisconsin
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Just give it time. There is a lot of govt. aid out there. Once that goes away, and more unemployed people aren't getting fat unemployment checks or are laid off by their employers, you'll see things get much worse and prices on many things will drop. This is not the time to buy a new house or a car. Wait till price cuts and wage cuts and permanent job losses mount. Then you can find bargains. Right now most are hopping everyone is back to work and back to normal by the end of summer. Football will start they hope, and all the restrictions and fear will be gone. I sincerely doubt it.
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Old 05-07-2020, 04:25 PM
 
1,963 posts, read 503,478 times
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Originally Posted by VitaminB12 View Post
This is a black swan event and by nature very hard to predict.
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.
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Old 05-07-2020, 05:14 PM
 
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Quote:
Originally Posted by VitaminB12 View Post
This is a black swan event and by nature very hard to predict.
Very true. But some what easier to make predictions moving forward. There will be varied effects across many economic sectors.

There will be supply problems with continued or increased demands like certain foods.
So expect some increased prices there.

There will also be sectors with decreased demands and/or over supply, like gasoline. So prices have to drop there.

There will be a buyers market for cars, and probably homes at least in some areas.

There is a huge number of rental cars just sitting. And there may be some hurting home owners/investors wanting to unload RE.
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Old 05-07-2020, 05:54 PM
 
8,311 posts, read 7,499,676 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.
Because this current pandemic is no reason to lower the prices. There is no drop in demand for goods or services.

This isnt a TWD, The Last Ship, or the Strain type scenario.
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