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> We're supply side constrained. What does this even mean? If there were no supply-side constraint, prices would dive toward zero like some post-scarcity Star
by mitthrowaway2 4y ago
> We're supply side constrained.
What does this even mean? If there were no supply-side constraint, prices would dive toward zero like some post-scarcity Star Trek society. There is always a supply side constraint; when you dump a bunch of demand in on top of that, of course prices will go up.
- socialismisok 4y agoIt means we're experiencing a period of uniquely high constraints. There are less goods available now than there used to be, because the normal levels of supply are constrained by pandemic and war.
- s1artibartfast 4y agoI'm not sure that is backed up by data. If you look at consumption, I think you see an increase in the volume goods purchased, not a reduction.
- caeril 4y agoBusiness inventories are the highest they've been in a decade right now. There are pockets of supply constraints, like energy and raspberry pis, but for the most part we are overflowing with inventory.
- mitthrowaway2 4y agoIf this were even true, it would only mean that aggregate demand has to decrease proportionately in order to maintain price stability.