Why is everything getting so over-priced?
In: Economics
A few reasons.
1) the supply of many goods and services became scarce when the world basically shut down during the pandemic. Scarcity creates price increases.
2) vast amounts of brand new money (trillions of dollars) we put in the hands of consumers. This lead to a surge in demand for goods and services. When demand goes up so do prices.
3) many people capable of work are getting paid to not work via unemployment and pandemic related aid, some are/were also stuck taking care of of children who couldn’t be in school. This has created a labor shortage. When there is a labor shortage the cost of labor goes up, and labor costs are usually a large driver of the costs of goods and services.
Its been a real perfect storm for inflation, and inflation means the cost of everything goes up. This is why government can’t just solve money problems by making more money.
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