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Cons of Cost-Push Inflation Increased Prices: The result of any inflation is going to be increased prices on goods or services. This can impact spending behavi
by sharemywin 3y ago
Cons of Cost-Push Inflation
Increased Prices: The result of any inflation is going to be increased prices on goods or services. This can impact spending behavior if consumers aren't able to receive more pay for their work as they'll have less to spend on products that cost more.
Decreasing Demand: If jobs and wages aren't increased then inflation actually can cause a decrease in demand. If consumers have less money to spend then they won't be able to keep up spending at higher prices.
Creates Uncertainty: One of the biggest problems with inflation is that it creates uncertainty with consumers, investors, and businesses alike. Businesses and consumers are less likely to make decisions when there is so much unknown about the future as the effects of inflation take place. This can lead to a decrease in spending and investment, which is typically detrimental to the economy.
https://seekingalpha.com/article/4488384-cost-push-inflation?hasComeFromMpArticle=false https://seekingalpha.com/article/4488384-cost-push-inflation...
- sharemywin 3y agoI could see people switching jobs more often to keep up with inflation, which would lead to losses in productivity. smaller businesses getting pushed out because the ability to manage prices instability makes it harder to navigate.