Are supply chain issues really the reason for inflation?

[silentkisser]

Many companies are using it as an opportunity to raise prices for no other reason but to line their pockets...

https://twitter.com/i/web/status/1491776417700491266

I recommend y'al read the thread. It explains a lot, and I think these people think they have cover because of the crisis. And of course, the right will blame it all on Biden...

 

[toguy5252]

There is no doubt that it is a significant reason but clearly not the only reason. There is no doubt that there is inflation in the inputs faced by busuiess and those with pricing power are raising prices as one would expect.

 

[KDK13]

Supply and demand.

 

[SeaGirth]

Could there be the slightest most minuscule tiny chance some businesses are using the “situation” to just jack up prices to make more profit? Maybe?

 

[danmand]

Excessive printing of money.

It is devaluation, not inflation, although the result is the same.

 

[SeaGirth]

https://twitter.com/i/web/status/1491776417700491266

And of course, the right will blame it all on Biden...

And of course, the left will blame it all on Trump…

 

[danmand]

And of course, the left will blame it all on Trump…

Not on Trump alone. It has now hit $30T

 

[jalimon]

Excessive printing of money.

It is devaluation, not inflation, although the result is the same.

Exactly.

Everything else can relate to it like the supply chain that broke which is actually a failure of capitalism.

 

[toguy5252]

I’m so impressed you can see yourself so clearly!! And I truly and wholeheartedly agree that you are one of the sorest losers that still has such a stupid, immature, nonsensical, Trump affliction and can’t let go( or maybe a deep deep affection).
if you live in Ontario I’m sure OHIP will pay for therapy.
My deepest condolences and may you find the peace you deservefor your deeply stupid Trump infatuation.

LMAO. Go back and review this thread. You are the only one who raised the stable genius. Too funny.

 

[poker]

Real Estate is the big culprit. Increased land costs affect retail, supply, and manufacturing. All gets passed along to the consumer.

 

[toguy5252]

Real Estate is the big culprit. Increased land costs affect retail, supply, and manufacturing. All gets passed along to the consumer.

The problem in Toronto and Vancouver is 2 fold. The supply cannot keep up with the demand and governments at various levels make it more expensive to develop land and build houses. Lot levies and development charges keep going up and nothing meaningful is being done to speed up the process of zoning land and to increase density. There all kinds of valid planning reasons etc but the consequence is higher costs and lower supply.

 

[danmand]

The problem in Toronto and Vancouver is 2 fold. The supply cannot keep up with the demand and governments at various levels make it more expensive to develop land and build houses. Lot levies and development charges keep going up and nothing meaningful is being done to speed up the process of zoning land and to increase density. There all kinds of valid planning reasons etc but the consequence is higher costs and lower supply.

Arguably true, but the biggest culprit is money printing, i.e. zero interest rate and lots of money slushing around.

It is not housing and land getting more expensive, it is money getting cheaper.

 

[poker]

The problem in Toronto and Vancouver is 2 fold. The supply cannot keep up with the demand and governments at various levels make it more expensive to develop land and build houses. Lot levies and development charges keep going up and nothing meaningful is being done to speed up the process of zoning land and to increase density. There all kinds of valid planning reasons etc but the consequence is higher costs and lower supply.

Supply and demand is 2 fold. You talked about supply issues and I 100% agree.

My issue is both the Liberal and Conservative immigration policies that rely too heavily on immigration as a means of growing the economy.

Harper’s entire economic policy was Immigration and Oil Sands. Trudeau lost the Oil Sands and really only has immigration.

They could slow down the demand by lowering immigration…. That too has comes with problems, but housing would correct real fast.

 

[toguy5252]

Arguably true, but the biggest culprit is money printing, i.e. zero interest rate and lots of money slushing around.

It is not housing and land getting more expensive, it is money getting cheaper.

The choice at the time was print money or allow businesses to fail and unemployment to stay very high. It is not a precise science and Powell and the WH and congress did what had to be done in the circumstances. Could they have ended accommodations earlier perhaps. It was a judgement call at the time and the choice is usually between employment and inflation. Difficult balancing act. Supply chain issues made a very bad situation worse. The point of shrinking the money supply and tightening in large part is to restrain wages not profits.

 

[toguy5252]

Supply and demand is 2 fold. You talked about supply issues and I 100% agree.

My issue is both the Liberal and Conservative immigration policies that rely too heavily on immigration as a means of growing the economy.

Harper’s entire economic policy was Immigration and Oil Sands. Trudeau lost the Oil Sands and really only has immigration.

They could slow down the demand by lowering immigration…. That too has comes with problems, but housing would correct real fast.

Canada needs immigration as does the US. Although immigration is an issue in housing, more se in Vancouver, it is a relatively small factor. Lowering immigration will have all kinds of unintended consequences and will not materially change the hosing affordability at least in Toronto.

 

[danmand]

The choice at the time was print money or allow businesses to fail and unemployment to stay very high. It is not a precise science and Powell and the WH and congress did what had to be done in the circumstances. Could they have ended accommodations earlier perhaps. It was a judgement call at the time and the choice is usually between employment and inflation. Difficult balancing act. Supply chain issues made a very bad situation worse. The point of shrinking the money supply and tightening in large part is to restrain wages not profits.

It is not just the last two years that caused the Federal Reserve's balance sheet to reach $30T. Look at the chart.

 

[poker]

Canada needs immigration as does the US. Although immigration is an issue in housing, more se in Vancouver, it is a relatively small factor. Lowering immigration will have all kinds of unintended consequences and will not materially change the hosing affordability at least in Toronto.

Its fuelling the bubble. Baby boomers coming of age in the 70’s through mid 80’s fuelled that housing boom, and once the last of the boomers were grown, and either in there own place, or remained in mom’s basement…. The demand stopped, supply kept being built, and housing crashed.

Demand is no longer young people growing up. It’s immigration. Once demand is cut, the market would take a little time, then boom… the rug gets from under everybody.

And you are again correct… all kinds of unintended consequences.

 

[danmand]

Its fuelling the bubble. Baby boomers coming of age in the 70’s through mid 80’s fuelled that housing boom, and once the last of the boomers were grown, and either in there own place, or remained in mom’s basement…. The demand stopped, supply kept being built, and housing crashed.

Demand is no longer young people growing up. It’s immigration. Once demand is cut, the market would take a little time, then boom… the right gets from under everybody.

And you are again correct… all kinds of unintended consequences.

Housing crashed when interest rates for mortgages went to 18%

 

[jalimon]

Some countries will remain affordable. Once my kid are done with school I'm leaving them my house and myself will move to Columbia, mexico or costa-rica or even Portugal to spend my days walking, watching soccer and appreciate the sun

 

[poker]

Housing crashed when interest rates for mortgages went to 18%

mortgages were 18% because the boomers fed demand for borrowed money. Student loans, cars, and housing. Once that train ended, interest rates came crashing down. Housing bubble popped. Record stores closed.