Comments posted organically
Business selectors, pages, etc.
Americans complain about the inflation that they are at least partly responsible for.

By Curt_Anderson
November 26, 2021 11:37 am
Category: Business
(0.0 from 0 votes)
SelectSmart.com    SelectSmart.com    SelectSmart.com


Share
Rules of the Post
Rate this article
(5=best, 0=poor)
5 Stars
4 Stars
3 Stars
2 Stars
1 Star
0 Stars



Cost-push Inflation
When worker wages increase production costs increase thus the price to the consumer increases. Of course, if consumers are unwilling or unable to pay the higher prices, the producer goes out of business and/or the employees won't get wage increases.

Demand-pull Inflation
When demand is high, prices increase. When consumers have money in the bank they have the ability to pay for things.

There is currently pent-up demand; in other words consumer willingness to spend their money. Postponed vacations and holiday travel due to Covid are happening this year. Restaurants and other businesses are seeing customers who for the last 18 months avoided them like (and because of) the plague.

The New York Times reports that "workers have seized the upper hand in the labor market, attaining the largest raises in decades and quitting their jobs at record rates. The unemployment rate is 4.6 percent and has been falling rapidly.

Cumulatively, Americans are sitting on piles of cash; they have accumulated $2.3 trillion more in savings in the last 19 months than would have been expected in the prepandemic path. The median household’s checking account balance was 50 percent higher in July of this year than in 2019, according to the JPMorgan Chase Institute."

Supply chain problems are also the result of consumer behavior. During the height of the pandemic, consumer demand dropped, thus manufacturers reacted by producing less. Now that demand is up, manufacturers and transporters throughout the world are struggling the fulfill consumer demand.

Manufacturers in the last decades have adapted a Just In Time manufacturing strategy which lowers costs but is not particularly resilient to fluctuating consumer demand. Also complicating matters is the fact that employees became sick or dead because of Covid. Of course, many employees didn't want to work in place where they were likely to be infected with Covid.


Cited and related links:

  1. nytimes.com
  2. fool.com


The views and claims expressed by contributors are their own and do not necessarily reflect the views and beliefs of SelectSmart.com. Not every statement made here can be assumed to be a fact.
Comments:

  1. by Donna on November 26, 2021 11:44 am
    It'll all eventually balance out. In the meantime, Biden will bear the brunt of the blame.




* Anonymous comments are subject to approval before they appear. Cookies Consent Policy & Privacy Statement. All Rights Reserved. SelectSmart® is a registered trademark. | Contact SelectSmart.com | Advertise on SelectSmart.com | This site is for sale!

Find old posts & articles

Articles by category:
SelectSmart.com
Report spam & abuse
SelectSmart.com home page


From our contributors:
Display Order:
The danger of frost has passed. We just put in our tomatoes and pepper plants.
Flora by Curt_Anderson     May 20, 2022 3:05 pm (Rating: 0.0)
Last comment by georges (8 comments) [78 views]


Redoing the Second Amendment
Law by HatetheSwamp     May 25, 2022 9:39 am (Rating: 0.0)
Last comment by georges (3 comments) [43 views]


Senate fails to advance domestic terrorism bill over GOP opposition
Horror by Donna     May 26, 2022 10:30 pm (Rating: 0.0)
Last comment by islander (13 comments) [158 views]


Here is a cause that the Right to Life and Pro-choice crowds should agree on
Crime by Curt_Anderson     May 26, 2022 9:38 am (Rating: 0.0)
Last comment by islander (6 comments) [110 views]


I am promoting my friends' local fun run.
Recreation by Curt_Anderson     May 2, 2022 3:01 pm (Rating: 0.0)
Last comment by Curt_Anderson (3 comments) [130 views]


Arming teachers is a stupid idea that won't reduce the rate of kids killed by guns.
Weaponry by Curt_Anderson     May 27, 2022 11:15 am (Rating: 5.0)
Last comment by Curt_Anderson (4 comments) [79 views]


Editorial: Attack on Nancy Pelosi should be San Francisco archbishop’s final act here
Religion by HatetheSwamp     May 23, 2022 6:38 am (Rating: 4.0)
Last comment by HatetheSwamp (62 comments) [956 views]


pb was right. Same-sex marriage is killing marriage
Gay & Lesbian by HatetheSwamp     May 25, 2022 11:14 am (Rating: 0.0)
Last comment by Ponderer (19 comments) [146 views]


Uvalde killer was in the school for up to an hour. Police response slow and inadequate.
Crime by Curt_Anderson     May 26, 2022 10:30 am (Rating: 0.0)
Last comment by Donna (4 comments) [56 views]


Biden's public approval falls to 36%, lowest of his presidency -Reuters/Ipsos
Politics by HatetheSwamp     May 25, 2022 10:18 am (Rating: 0.0)
Last comment by georges (2 comments) [62 views]