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Gas went from $3.50 - $5 overnight where I live. I guarantee it will not drop back down to $3.50 that quickly. Did my income rise to cover the extra $45 it now
by irrational 5y ago
Gas went from $3.50 - $5 overnight where I live. I guarantee it will not drop back down to $3.50 that quickly. Did my income rise to cover the extra $45 it now costs to fill up my truck? No. Same with everything else. Prices are going up like gangbusters, but my income is static. Those rising prices MAY come down someday, but probably not back to where they used to be.
- bruce511 5y agoAh, I understand, you're saying that from a consumer perspective prices go up, but are slow to come down. That is clearly the case. Ultimately inflation works by driving prices up. So the extra $45 will ultimately be made up on your income side, basically by you putting your prices up, thus fueling the cycle. Inflation on basic necessities like energy and food have more knock ons than non essentials. Ultimately the fuel vendor is covering not just the increase in fuel to him, but also the increases needed for his staff.