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There has been endless coverage of the supply side of current economic weirdness affecting the world, but scant coverage of the demand side. Yet if this blog po
by cbdumas 5y ago
There has been endless coverage of the supply side of current economic weirdness affecting the world, but scant coverage of the demand side. Yet if this blog post[0] that was discussed here a couple of weeks ago is to be believed spending on goods in the US shot up by 20% this year. It seems to me that even if global supply chains were working flat out and in perfect order we would still see huge disruptions given a shock to demand of that magnitude. I would love to see more detailed reporting from a knowledgeable source on this.
[0] https://am.jpmorgan.com/us/en/asset-management/institutional/insights/market-insights/eye-on-the-market/dude-where-is-my-stuff/ https://am.jpmorgan.com/us/en/asset-management/institutional...
- spywaregorilla 5y agoSpending could go up, absent an increased demand, if lower supply raised prices
- cbdumas 5y agoThat's absolutely true, but is that what's happening? That seems like a really important question for this article (and the legion of others like it) to tackle. The linked article even mentions demand in the subhead, and then basically ignores it in the actual body. Thus my frustration.
- volkl48 5y agoNot exactly the detailed reporting you are looking for, but: People normally spend a lot of their disposable income on travel/bars/dining/concerts/experiences/other similar categories that don't involve a lot of imported goods per dollar spent. Last year they shifted a lot of that spending to stuff, and when much of the population does that.....that buys a lot of stuff. Anecdotally, among most people I know, that balance of how they spend their disposable income still hasn't returned to it's pre-pandemic state.