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Inflation expectations can also cause shortages, that seems like a pretty significant problem here. Suppliers will sell only as much steel as they absolutely n
by aeternum 5y ago
Inflation expectations can also cause shortages, that seems like a pretty significant problem here.
Suppliers will sell only as much steel as they absolutely need to to pay immediate expenses if they expect the price of steel will be higher next week.
I suspect that's what some of these 'shortages' actually are. Astute business people that are simply waiting longer than usual to part with their product because the price keeps going up.
- dustintrex 5y agoThat's a mighty risky game though. If you were getting $1 per widget last year, and can sell them for $2 now, most suppliers will be more than happy to sell at $2 instead of holding out for $3 and risking $1 or $0.50.
- imtringued 5y agoEveryone did that and then the lumber price crashed.