As Brandon tries to blame inflation on anyone but himself, bird poops on Brandon...

Damocles

Damocles

Accedo!
Staff member
https://nypost.com/2022/04/12/bird-poops-on-biden-as-he-claims-us-is-in-dumps-due-to-putin/

biden-bird-iowa-021.jpg


LOL.

Even nature knows how stupid it is to blame inflation that is over 1 year old on a war that started last month.
 
1. Demand-pull inflation

Demand-pull inflation happens when the demand for certain goods and services is greater than the economy's ability to meet those demands. When this demand outpaces supply, there's an upward pressure on prices — causing inflation.

A practical example of this would be tickets to see Hamilton live on Broadway. Because there were a limited number of seats and the demand for the live show was far greater than capacity, the price of tickets skyrocketed approaching $2,000 on third party sites, well above the standard ticket price of $139 and premium ticket price of $549 at the time.
 
evince said:
https://www.businessinsider.com/causes-of-inflation



What to know about the 6 main causes of inflation

Kevin L. Matthews II Updated Mar 16, 2022, 12:03 PM
Click to expand...


2. Cost-push inflation

Cost-push inflation is the increase of prices when the cost of wages and materials goes up. These costs are often passed down to consumers in the form of higher prices for those goods and services. An example of this would be lumber, as lumber is an input good for houses. When the cost of lumber spiked as much as 400% earlier in 2021 it had an impact on the increase in housing prices resulting in inflation.
 
evince said:
https://www.businessinsider.com/causes-of-inflation



What to know about the 6 main causes of inflation

Kevin L. Matthews II Updated Mar 16, 2022, 12:03 PM
Click to expand...



3. Increased money supply

Increased money supply is defined as the total amount of money in circulation, which includes cash, coins, and balances and bank accounts according to the
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. If the money supply increases faster than the rate of production, this could result in inflation, particularly demand-pull inflation because there will be too many dollars chasing too few products. An increase in money supply is usually created by the Federal Reserve through a process called Open Market Operations (OMO).
 
evince said:
https://www.businessinsider.com/causes-of-inflation



What to know about the 6 main causes of inflation

Kevin L. Matthews II Updated Mar 16, 2022, 12:03 PM
Click to expand...


4. Devaluation

Devaluation is downward adjustment in a country's exchange rate, resulting in lower values for a country's currency.

The devaluation of a currency makes a country's exports less expensive, encouraging foreign nations to buy more of the devalued goods. Devaluation also makes foreign products for the devaluing country more expensive which encourages citizens of the devaluing country to buy domestic products over foreign imports.

China is perhaps most known for this tactic as the United States and other nations have frequently accused China of working to devalue the Yuan over the years.
 
evince said:
https://www.businessinsider.com/causes-of-inflation



What to know about the 6 main causes of inflation

Kevin L. Matthews II Updated Mar 16, 2022, 12:03 PM
Click to expand...

5. Rising wages

Rising wages is exactly what it sounds like — an increase in what's being paid to workers. "Wages are a cost of production," adds Baker. "If wages rise a large amount, businesses will either have to pass the cost on, or live with lower margins. The exception is if they can offset wage growth with higher productivity."

However, economists remain mixed on the impact of gradual increases in wages, like raising the minimum wage, compared to faster, more sudden wage growth seen in places like Silicon Valley. Some believe that an increase in wages could result in cost-push inflation due to the higher cost to businesses, while others believe that higher wages across the board (not just concentrated in certain sectors) will also increase demand enough to offset a spike in prices.

"Rising wages should allow consumers to combat inflation, especially if the wages are rising at the same or a faster rate than the inflation rate," adds Susane L. Toney, Ph.D, endowed chair of Business and Economics at Hampton University. "The rising wages allow consumers to pay higher prices without impacting their purchasing power."
 
evince said:
https://www.businessinsider.com/causes-of-inflation



What to know about the 6 main causes of inflation

Kevin L. Matthews II Updated Mar 16, 2022, 12:03 PM
Click to expand...



6. Policies and regulations

Certain policies can also result in either a cost-push or demand-pull inflation. When the government issues tax subsidies for certain products, it can increase demand. If that demand is higher than supply, costs could rise. Additionally, stringent building regulations and even rent stabilization policies could inadvertently increase costs and create an inflationary environment by passing those costs to residents or artificially reduce the supply of housing.
 
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