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I'm surprised no one else has mentioned it but I would say a bigger problem is that the stimulus is encouraging people to not work which discourages production
by HNfriend234 5y ago
I'm surprised no one else has mentioned it but I would say a bigger problem is that the stimulus is encouraging people to not work which discourages production of goods/services. A lot of the inflation I've experienced it directly from less people providing goods/services so those who are producing have more pricing power and simply raise their prices. I recently got quotes for some construction work and all of these contractors say they're booked out for MONTHS!
We need to start rolling back on all of the stimulus and COVID rules we've implemented to encourage people to return back to work.
Once this happens, I believe production will increase and inflation will dissipate quicker.
- rbg246 5y agoHow do you know it's not that more people have access to cheap loans, more people are wanting construction done?
- ktkoffroth 5y agoBecause it isn't just happening in the construction industry. There are restaurants in my town offering a $3000 bonus if servers and cooks commit to 4 months of work. They literally cannot open entire sections of their restaurant because they cannot find enough people willing to work. Same thing with the trucking industry, there was a driver shortage before the pandemic, and it has only gotten worse. People are simply not willing to work so long as they are being paid to sit at home.
- rbg246 5y agoInteresting that it is so widespread- from my perspective it's great that there people now have leverage in negotiating their wage
- CameronNemo 5y agoYou know what would also increase production and increase labor force participation? Paying workers more.
- deleted 5y ago[deleted]
- gpsx 5y agoI wonder if this is what the fed and treasury are really shooting for, trying to push some inflation into worker salaries. If so they may willingly sacrifice some gains in the market.