With sharp increases to the price of goods and services, where’s all this extra money I’m spending going?

Question

Don’t try to tell me my wages are sharply increasing either, because they’re not! Nor are my friends, family, or neighbors.

In: 113

Answer 1

Shortages mean companies have less to sell, so what they’re selling is more valuable to them, and they charge higher prices. Because there’s less volume, many companies make less, or even lose money, even though prices are higher.