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> Shifted means that some end products see an increase of costs in their value chain, which leads to higher prices. In the long run, but it is not uncommon to

> Shifted means that some end products see an increase of costs in their value chain, which leads to higher prices. In the long run, but it is not uncommon to see production lose money when their input costs are higher than the consumer price. A vendor is still beholden to what someone will pay and when you have to pay for your inputs before proving what the end consumer will pay, you can quickly be left holding the bag. This corrects eventually, but not usually within the span of days or even months. It can often take years to see things correct. You still can't have inflation if the people don't have money. A business can't magically charge more than someone is willing and able to pay. And they say the people don't have more money to pay with, currently subsisting on draining their savings, so inflation will be short lived – unless incomes start to rise. The FED is working tirelessly to try and prevent that from happening, but we'll see.

ephbit 4y ago
> ... you can quickly be left holding the bag. This corrects eventually, but not usually within the span of days or even months. It can often take years to see things correct. You're aware that especially bakeries have been raising prices very promptly all over the world. True, price raises do have delays in some cases (rents) but generally for most common services and products that people buy in everyday life, if there's no cartel messing with prices, they will very consistently and without years of delays increase when inputs become more expensive. > You still can't have inflation if the people don't have money. This might be true for the more dispensible items in the basket but I'd say for real necessities it's mostly wrong. People who have little money will first shift their expenses from less necessary things to essentials. Even if people don't have more money, they will have to spend more on the things they continue buying. This is exactly what's happening right now, almost everywhere. > A business can't magically charge more than someone is willing and able to pay. Unless there are subsidies by the state that try to keep the businesses afloat. These are very pervasive.

ephbit 4y ago

> ... you can quickly be left holding the bag. This corrects eventually, but not usually within the span of days or even months. It can often take years to see things correct. You're aware that especially bakeries have been raising prices very promptly all over the world. True, price raises do have delays in some cases (rents) but generally for most common services and products that people buy in everyday life, if there's no cartel messing with prices, they will very consistently and without years of delays increase when inputs become more expensive. > You still can't have inflation if the people don't have money. This might be true for the more dispensible items in the basket but I'd say for real necessities it's mostly wrong. People who have little money will first shift their expenses from less necessary things to essentials. Even if people don't have more money, they will have to spend more on the things they continue buying. This is exactly what's happening right now, almost everywhere. > A business can't magically charge more than someone is willing and able to pay. Unless there are subsidies by the state that try to keep the businesses afloat. These are very pervasive.