How can inflation be so high right now when average incomes have stagnated for so long? People don’t have more money to spend. Why is inflation so high?
In: Economics
People might be telling you that printing money has something to do with inflation and it might be true for some things but most things we see increasing are short term impacts caused by the pandemic. Let’s look at some.
Lumber. During the pandemic, many workers were able to continue working from home. They had more time andb were spending it in the home. This, combined with low interest rates led to many home improvement projects. Sawmills could not keep up with demand due to the pandemic and prices for lumber started to rise.
Cars. Used cars have shot up in price. There’s a chip shortage caused by the pandemic and new cars are sitting at manufacturers waiting for sometimes a single part.
Restaurant prices. Can’t even buy wings. Why? Pandemic messed with supply. See a theme?
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