Last year the economy was hit with the pandemic shock. US monthly GDP (year-over-year) fell 11.3% in April 2020, and some 9% in May 2020, and prices fell. With the economy recovering, prices are recovering too. That’s all.
No surprise if we get inflation now. After being essentially shut down for a year, a lot of businesses will try to make up for lost revenue as quick as possible as soon as people resume their former buying habits. Businesses will raise prices, and they will likely get away with it because enough people will be willing to pay in order to “recoup what they’ve missed”.
I am on a fixed income. Inflation hits me RIGHT where I live because “fixed” incomes don’t get adjusted for inflation. I also have some SS, and that IS sort of indexed, but only after the fact, and only on an average that doesn’t seem to be set anywhere I shop. And despite that, I’m strongly in favor of a living minimum wage and (somewhat) bailing out the folks near the bottom who have been hardest hit by the Pandemic.
tRump’s failures to lead and to allow the CDC to fight COVID-19 as soon as he was informed of it put us in recession, and shut down much of the world. Coming back and out of that economy will make inflation, but it is temporary.
Geez, Steve, the inflation rate is a “whopping” 4.2% – which is ‘nominal’ for a restarting economy – I remember when the "inflation rate was in the double digits and we survived – what are you whining about?
macgupta123 almost 3 years ago
Last year the economy was hit with the pandemic shock. US monthly GDP (year-over-year) fell 11.3% in April 2020, and some 9% in May 2020, and prices fell. With the economy recovering, prices are recovering too. That’s all.
Radish the wordsmith almost 3 years ago
Increased demand creates scarcity and higher prices, its one of the prices you pay for things getting back to normal.
ferddo almost 3 years ago
No surprise if we get inflation now. After being essentially shut down for a year, a lot of businesses will try to make up for lost revenue as quick as possible as soon as people resume their former buying habits. Businesses will raise prices, and they will likely get away with it because enough people will be willing to pay in order to “recoup what they’ve missed”.
Concretionist almost 3 years ago
I am on a fixed income. Inflation hits me RIGHT where I live because “fixed” incomes don’t get adjusted for inflation. I also have some SS, and that IS sort of indexed, but only after the fact, and only on an average that doesn’t seem to be set anywhere I shop. And despite that, I’m strongly in favor of a living minimum wage and (somewhat) bailing out the folks near the bottom who have been hardest hit by the Pandemic.
DIF20 almost 3 years ago
The retail companies created the scarcity so now they will create the price increases!
djtenltd almost 3 years ago
Cute!
MuddyUSA Premium Member almost 3 years ago
It is the price we pay, thanks to old Joe and the DemocRats!
ArtyD2 Premium Member almost 3 years ago
I don’t understand the graphic. Movie title?
ncorgbl almost 3 years ago
tRump’s failures to lead and to allow the CDC to fight COVID-19 as soon as he was informed of it put us in recession, and shut down much of the world. Coming back and out of that economy will make inflation, but it is temporary.
MuddyUSA Premium Member almost 3 years ago
The causes for scarcity and higher prices is Old Joe and his leftist cohorts. That is notThe way to get back to normal!
wellis1947 Premium Member almost 3 years ago
Geez, Steve, the inflation rate is a “whopping” 4.2% – which is ‘nominal’ for a restarting economy – I remember when the "inflation rate was in the double digits and we survived – what are you whining about?