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The problem here, especially if the prices are rising higher than wages is, that sooner or later the basic necessities (food, shelter, ...) reach a level, where
by ajsnigrutin 3y ago
The problem here, especially if the prices are rising higher than wages is, that sooner or later the basic necessities (food, shelter, ...) reach a level, where people can barely pay them, and all the other industries suffer, because consumers don't have any leftover money for luxuries, gadgets, etc.
Some prices (mostly services) can be adjusted, some could be (rents, housing, mostly by rezoning and building more), but due to "reasons" (mostly local and national governments holding back) they aren't (until someone compares the average pension to average rent and instead buys a sniper gun and finds the responsible politician). Some prices are also stuck due to politicians doing their dick-measuring competitions ending in sanctions for countries that have stuff other countries need, and industries shutting down because that stuff became too expensive there.
On the other hand, we did print A LOT of money in the last few years, and blaming everyone else except (also) the ones who have the power to print is just stupid.
- makomk 3y agoIt is probably not possible for people to carry on buying luxuries, gadgets etc at the same levels as before without others being forced to do without the basic necessaties. Remember, this all started out with an energy crisis: there was not really enough to supply all the factories in China running flat out as people caught up with their consumption along with everything else, and then Russia throttled back their exports and made things worse. That shortage of energy directly caused prices to increase until demand could actually be satisified, which directly made things like food more expensive. You couldn't just fix this by forcing the companies to charge less, even though the money is ending up as profits, because energy and fuel just isn't available in sufficient quantities without Russia. There's also a shortage of workers in most developed countries too, which means that any labour used to provide luxuries directly impacts the amount available to produce the basic necessaties like housing and healthcare as well.
- revelio 3y agoThe sharp rise in inflation predates any kind of energy crisis. Inflation kicked off in 2021. https://tradingeconomics.com/united-states/core-inflation-rate https://tradingeconomics.com/united-states/core-inflation-ra... Energy didn't become a major issue until Ukraine was invaded. Inflation was triggered by all the money printed during COVID getting into the economy once it opened up again.