Everything is getting more expensive and there are budget cuts everywhere. Where is all the money going?
In: Economics
There can be multiple factors at play, two of which are inflation and increased costs.
Inflation means the actual value of the money will decrease over time, so 100$ is for various reasons not really worth 100$ anymore. To compensate for this, costs will be increased.
Cost can increase for other reasons than inflation as well. Global events can have an impact, laws and regulations, business increasing costs because they want to increase their profit margin, products going out of production etc.
In the end, the money doesn’t really “go” anywhere else than it usually does, it most often that more money needs to “go” because it has lost value or costs have increased for various reasons.
Some of it will be recircled within the economy, while some of it will end up in someone’s bank account.
Microsoft just put their dividend up by 10% and announced another $60b in stock repurchases. Corporate profits are at their highest ever and that is being returned to the owners. So it is mostly going in my pocket and the pockets of other stock holders.
The largest nation on earth and the most populous nation on earth rearmed after a 15-25 year or so break from being menaces to society and are back on the longterm warpath across trade lanes. 100% chance to damage the world economy and change the pre-2020 world back into sort of a mashup of both the Cold War 50s and hot war 40s.
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