Can someone school me better on inflation? Obviously the Party Of No gang will point fingers at recent legislation meant to help people and do some legit investing…but I thought the main drivers were a surge in demand following Covid relaxations, compounded via slower recovery on the supply side (particularly long lead items), and aggravated by excessive monetary policy (artificially low rates, relief spending, etc).
What am I missing? There was a lot of pressure to keep prime rates low, ‘Dow 25k’ hats, dumbass ‘middle class’ tax break and the poorly-managed loan program in the US…but it’s a global problem. Airlines are a perfect example, canceling flights due to lack of equipment and crews, contracting too far too fast in the interests of short term financial performance + assuming Covid lockdowns / demand suppression would last far longer.
Rates needed to be raised while the supply-side catches back up and cool demand a bit. It’s gonna suck, for awhile. Maybe super-lean manuf chasing low overhead isn’t optimal for all industries. Throw in climate change.
There’s no easy answers, right? Not shocked the usual suspects blame Biden when it seems these seeds were sown ages ago. It’s an outrage no matter what a Dem admin does or doesn’t do. Seems this shit always follows a ‘low taxes, no regulation’ admin.