Re:Rate Hikes Are Affecting the Economy
by lotsofpulp on Wednesday November 02, 2022 @04:01AM
(#33432537)
> There's no quick fixes to the supply problems nor for the monetary (supply) problems, and if perceptions are that inflation will continue, it will continue regardless of underlying metrics.
Perhaps it is a supply of cheap labor problem that Covid shutdowns allowed a sufficient disruption to low paying labor markets to cause a “phase change”.
Even before Covid, labor prices were trending up (maybe since birthrates have been dramatically falling for a long time), but the sudden, rapid shake up gave people en masse time and excuse to change things up for themselves, causing a chain reaction from the lowest paid labor being harder to fill.
Many people, especially Americans, forget the supply side - a pandemic which wrecked global supply lines, and a war which is impacting some of the most important resources (food and energy), globally. No idea why, maybe because they can't blame a politician/party for that part.
In any case, inflation has many complex causes, is global, and may take quite some time to get reigned in. There's no quick fixes to the supply problems nor for the monetary (supply) problems, and if perceptions are that inflation will continue, it will continue regardless of underlying metrics.