The pandemic resulted in inflation. Why? Because there was a global paradigm shift. Everyone knows it is true, so stop trying to make up all kinds of political rhetoric to back Moscow Mitch and his stubborn ability to pander to million-billionaires and cheat the Middle Class. And for McConnell, forget about the poor, they are just lazy no-good people.
So let’s just think about this a minute.
Republicans like supply side economics. Supply side can reduce the cost of items even if they are in demand. Right? More of a product exists the cheaper the cost; ie: best Wall Street example is oil and every adult in the USA is used to the price abuse of the petroleum industry.
So, here were all this warehouses full of stuff feeding the supply side economics. Then a preventable pandemic hits. People are told to stay at home, including the children and there goes a regular income to count on right out the window.
Anyone run out and buy all those warehoused school supplies? No? Well, why not? Could it be the world got scary and the thought of traveling anywhere on a shopping trip with a very reduced income became a flyin’ nightmare.
Supply side economics with a global pandemic became a weight around Wall Street’s neck. Nothing was moving and the manufactured products even if they came from overseas were now coming into warehouses that had no inventory moving out. Who do you think will do at for all that storage? Yep, it gets passed along to the consumer. When the consumer is hit with higher prices through no fault of their own, isn’t that inflation? It sure seems like it to me.
Now, let’s consider why, a year after the pandemic and opening venues that have been shuttered, why would there be inflation?
Buffet said his holdings that manufacture are being met with inflation. Ya, think? The economy is starting to creak alive again. The warehouses over the past year emptied out of products that were in demand. Now, people are returning to work and enjoying a better income and benefits. Items start to sell. Is the paradigm changing again?
You betcha. Are manufacturers fully engaged with supply side economics? Heck no.
For the manufacturer that weathered the storm, it needs a new supply of raw materials to return to high volumes of goods to sell. Restarting a business, especially manufacturing, has high costs. Who do those costs get passed on to? Yep, the consumer. Do prices go up? Darn right they do. And who is feeling the inflammation? The consumer.
The inflation, where it exists l, is do the collapse and now expansion of the global economy, which is not at the stage of trade for every country.
The USA currency is as strong as ever and the markets have been fine. In case no one was looking there have been leaps of good news for Wall Street during the pandemic. And why shouldn’t there be, they got paid their dividends while the consumer picked up the tab.
