Predictions of inflationary doom and gloom are exaggerated. I guess the right word would be “inflated.”
Yes, prices have jumped over the same time last year.
But last year we were in a historic downturn because of the Trump economic collapse following his failure to take early, aggressive preventive action that could have managed the pandemic (as was successfully done in other countries that followed the essentials of the Obama pandemic playbook that Trump had thrown out.
Now, due to President Biden’s rapid success — so far beating most projections on vaccinations and recovery — things are opening up faster than anyone expected.
People can go back to work.
People can start buying things and doing things, creating a sudden surge in CONSUMER DEMAND far more rapidly than anyone expected.
And because supply chains have been idle, and had not anticipated the amazing speed of the Biden success story, companies have not had time to ramp of the production to meet the sudden surge in consumer demand. Rental car companies that sold off unused demand last year are scrambling to replace supply this year. And many other industries are also rushing to catch up with exploding consumer demand that is the first sign of the Biden prosperity we are now entering into.
There is a TEMPORARY imbalance of supply and demand.
Businesses are now ramping up. They are hiring. They will be producing.
As supply catches up with demand, equilibrium will be restored and inflation will be brought back into balance.