Why is there inflation?

[MacBH928]

Prices are rising like crazy there is like a jump every few days. Not only that but a lot of products are getting harder to find. Whats going on?

i understand in the COVID situation slower work caused less production which made products scarcer and prices probably rise but everyone is back to working and now and corporates should want to sell as much as possible.

The only thing i can think of is oil prices rising to above $100 per barrel but is that enough to cause all this chaos?

 

[Huntn]

What Causes Inflation? How It's Measured and How to Protect Against It

In this article, we examine the fundamental factors behind inflation, different types of inflation, and who benefits from it.

www.investopedia.com

7 Factors That Cause Inflation | SoFi

Inflation is something that investors should watch closely, but what causes it? Here are a few of the main factors that influence economic inflation.

www.sofi.com

 

[44267547]

i understand in the COVID situation slower work caused less production which made products scarcer and prices probably rise but everyone is back to working

That’s a broad stroked statement that’s just not accurate at all.

I can tell you that there are many various workforce entities that are struggling to find quality and consistent employees, both in the government sector and private industry.

I can go on and on about that, but my point is, that ‘everyone’ is certainly not back to working, not when there are job signs in front of loads of various companie/industries, advertisements are abundant on podcasts and TV, media posts/articles, ect, all looking to recruit potential employees with a higher wage.

The problem isn’t just finding an ‘employee’, it’s finding employees that includes retention. Meaning, that employee doesn’t just work for two weeks and quits.

I live in a highly populated city, and you could have a job within a few hours if you wanted it, with little-to-no-skill, and on job site training even for tradesmen occupational opportunities.

 

[MacBH928]

That’s a broad stroked statement that’s just not accurate at all.

I can tell you that there are many various workforce entities that are struggling to find quality and consistent employees, both in the government sector and private industry.

I can go on and on about that, but my point is, that ‘everyone’ is certainly not back to working, not when there are job signs in front of loads of various companie/industries, advertisements are abundant on podcasts and TV, media posts/articles, ect, all looking to recruit potential employees with a higher wage.

The problem isn’t just finding an ‘employee’, it’s finding employees that includes retention. Meaning, that employee doesn’t just work for two weeks and quits.

I live in a highly populated city, and you could have a job within a few hours if you wanted it, with little-to-no-skill, and on job site training even for tradesmen occupational opportunities.

whats going on here?

where are all the people who used to work pre COVID?

this is the first time i hear of more jobs than employees, usually people complain about unemployment rates and having difficulty finding a job

 

[eyoungren]

That’s a broad stroked statement that’s just not accurate at all.

I can tell you that there are many various workforce entities that are struggling to find quality and consistent employees, both in the government sector and private industry.

I can go on and on about that, but my point is, that ‘everyone’ is certainly not back to working, not when there are job signs in front of loads of various companie/industries, advertisements are abundant on podcasts and TV, media posts/articles, ect, all looking to recruit potential employees with a higher wage.

The problem isn’t just finding an ‘employee’, it’s finding employees that includes retention. Meaning, that employee doesn’t just work for two weeks and quits.

I live in a highly populated city, and you could have a job within a few hours if you wanted it, with little-to-no-skill, and on job site training even for tradesmen occupational opportunities.

My son is 18 and has never had a job. There are many, many opportunities where I live (Phoenix), but I am never going to push unskilled labor at fast food chains or other shops on him. As a customer I've seen how other customers abuse the staff. In a lot of stores, there is minimal staff and I'm left to wonder how they are being treated by their employer. Not something I want for my son.

If he can find something in his career field or some work that doesn't strictly deal with the public I'd be happy to support that. But I just see the looks on these employees faces and it's hard not to feel for them. Some of them literally look like the walking dead.

 

[Realityck]

Prices are rising like crazy there is like a jump every few days. Not only that but a lot of products are getting harder to find. Whats going on?

i understand in the COVID situation slower work caused less production which made products scarcer and prices probably rise but everyone is back to working and now and corporates should want to sell as much as possible.

The only thing i can think of is oil prices rising to above $100 per barrel but is that enough to cause all this chaos?

The pandemic strikes again. They had to close some refineries, therefore transport costs went up as fuel prices rose. Less factories fully open caused price spiking of high in demand products.

 

[MacBH928]

What Causes Inflation? How It's Measured and How to Protect Against It

In this article, we examine the fundamental factors behind inflation, different types of inflation, and who benefits from it.

www.investopedia.com

7 Factors That Cause Inflation | SoFi

Inflation is something that investors should watch closely, but what causes it? Here are a few of the main factors that influence economic inflation.

www.sofi.com

the Fed released the equivalent of $3.8 trillion in new liquidity in 2020.​

i guess there were have it

 

[44267547]

My son is 18 and has never had a job. There are many, many opportunities where I live (Phoenix), but I am never going to push unskilled labor at fast food chains or other shops on him. As a customer I've seen how other customers abuse the staff. In a lot of stores, there is minimal staff and I'm left to wonder how they are being treated by their employer. Not something I want for my son.

If he can find something in his career field or some work that doesn't strictly deal with the public I'd be happy to support that. But I just see the looks on these employees faces and it's hard not to feel for them. Some of them literally look like the walking dead.

I’m not even inferring about ‘fast food’ jobs. Those have always been widely available for years that requires no skill and have same day hiring. I’m referring to Masonary jobs, plumbers, CDL drivers, fabrication and manufacturing, all of which are starting at ~$21 or more, that have on-site job training. These are the types of jobs that people should be trying to look for that offer opportunity for expansion.

But let’s get back to the topic:

So why is there inflation?

Inflation exists for many reasons. The CEO of Tyson foods made some comments about two months ago and he talked about why the consumer doesn’t understand inflation. He mentioned for example, their price for chicken has risen exponentially. Why is that? And he said that it costs more to feed the grain to the animals, to transport the product has cost more due to fuel prices, farmers are also passing the cost to these manufacturing facilities who prepare the product, ect. All these costs accumulate and they have to be passed down to the consumer, because it’s costing the back-end sources more money. It’s all circular.

 

[TightLines]

But let’s get back to the topic:

So why is there inflation?

Inflation exists for many reasons. The CEO of Tyson foods made some comments about two months ago and he talked about why the consumer doesn’t understand inflation.…..

Thats a person who directly benefited from the inflation all the while exploiting his workforce. That invalidates anything he has to say IMHO.

His company culled millions upon millions of chickens instead of donating them to those who could benefit because they would not fetch the prices on the open market that he felt was profitable. The Tyson company under his leadership collected all the gov’t handouts and corporate welfare benefits it could get its hands on, all the while at the same time firing untold amounts of its workforce instead of paying them with the money that was intended for retaining people during the pandemic…

That guy, and many others just like him don’t deserve a platform to espouse their greedy profit driven agenda… that always misrepresents or omits what their companies have done. They are part of the problem - not solution, and they certainly don’t have the answers.

All IMHO, of course….

Meat industry hyped ‘baseless’ shortage to keep plants open amid ​

Dark Side Case: Tyson Foods during COVID-19 Pandemic​

 

[PinkyMacGodess]

Why? Because this country has a large community of very rich people that are trying to make a point, and cause a reaction in the populous.

We, Americans, are being herded on a pretty consistent basis. It's not all by one group, or aimed at one group, but the rich investor class can manipulate markets, lose money, and write it off on their taxes. They don't experience the crushing lows that normal people do, to me, losing 20% of my net worth would be devastating, but to a multimillionaire, that kind of loss is NBD. They write the losses off, but we (normal working class people) CAN'T WRITE THAT OFF.

What makes me chuckle are people that are very lightly invested in the stock market will lose their 'poop' when their investments lose 5%. They freak out. People read, and hear the exaggerated reports of cataclysmic Wall Street loses, and just lose it. 'I'M losing money!!!' they whine. Yeah, well, you aren't losing money until you move that money somewhere else. When the price goes down, you can buy more. People that kept buying Apple Computer stock are iving 'high on the hog' now. Even Microsoft. Cha-ching...

But if oil corporations are making 'record profits', and other corporations are also making 'record peofits', you only have to think 'Everything si going as planed. THEY are making money at least.

Wall Street has proven that they can make huge profits in a 'down market'; do you think that Wall Street people in the bowels of the nations economy aren't planning something to spook people, herd people, influence people? We are being played. Well, and we are coming out of a worldwide pandemic that killed MILLIONS of people. It's effected many people, many industries, many groups. *sigh* I'm done...

 

[PinkyMacGodess]

*shrug*

 

[44267547]

That’s not a discussion I would go down for obvious reasons, which I think your bridging deep into PRSI, and that’s where I have zero interest in participating in.

My point was and still is, the CEO talks about directly how inflation is passed down to the consumer from a standpoint of where it starts from the farms, trickles to the transport companies, the cost of grain/feed, surcharge of fuel, production shortages, which also probably force more overtime, all of these costs have to be measured in some respects that have to be accounted for, which is the denominator to the consumer.

That’s the whole focal point, is regardless of your viewpoint, what he said isn’t inaccurate, he saying that’s where these costs are associated with inflation, because the average consumer doesn’t understand it. He’s not wrong.

 

[jav6454]

Prices are rising like crazy there is like a jump every few days. Not only that but a lot of products are getting harder to find. Whats going on?

i understand in the COVID situation slower work caused less production which made products scarcer and prices probably rise but everyone is back to working and now and corporates should want to sell as much as possible.

The only thing i can think of is oil prices rising to above $100 per barrel but is that enough to cause all this chaos?

This is a topic too long to explain, but in short, printing money during the pandemic, workforce issues and war.

 

[subroutines]

My son is 18 and has never had a job. There are many, many opportunities where I live (Phoenix), but I am never going to push unskilled labor at fast food chains or other shops on him. As a customer I've seen how other customers abuse the staff. In a lot of stores, there is minimal staff and I'm left to wonder how they are being treated by their employer. Not something I want for my son.

If he can find something in his career field or some work that doesn't strictly deal with the public I'd be happy to support that. But I just see the looks on these employees faces and it's hard not to feel for them. Some of them literally look like the walking dead.

You sound like one of those helicpoter-type parents raising a new generation of sheltered, naive kids. 😁

Getting a taste of retail jobs or blue collar is not a bad thing. Everyone has done it, espcially me and my collegues who are PhD-level research scientists at major medical university. You may not learn skills that are going to add to your resume but you learn a lot of the soft skills and expand your horizon with experiences that are outside of your comfort zone.

 

[AlaskaMoose]

This is a topic too long to explain, but in short, printing money during the pandemic, workforce issues and war.

Those are good points!

I will add the following: as the price of fuel increased, the cost of good and services increased.

This organization has some ideas about the degree of inflation in 2022:

Reasons for Inflation: US Inflation in 2022

Inflation generally happens due to changes in the demand and supply for different goods and services on a national or international level.

www.dunhillfinancial.com

 

[BotchQue]

Exxon $5.5B Q1/2022, doubled from a year ago

Shell Strongest quarterly profit in their history

Chevron Strongest quarterly profit in a decade

Meat prices up by double digits; Tyson $1B profits in 1Q22 (48% more than 1Q21)

Robert Reich 8 Jun 2022

(and I know I have, somewhere in my notes, the increase in wealth for Amazoid and others during the Pandemic, couldn't find it quickly)

 

[F23]

because Papa Powell make the money printer go BRRRR

 

[MacBH928]

That’s not a discussion I would go down for obvious reasons, which I think your bridging deep into PRSI, and that’s where I have zero interest in participating in.

My point was and still is, the CEO talks about directly how inflation is passed down to the consumer from a standpoint of where it starts from the farms, trickles to the transport companies, the cost of grain/feed, surcharge of fuel, production shortages, which also probably force more overtime, all of these costs have to be measured in some respects that have to be accounted for, which is the denominator to the consumer.

That’s the whole focal point, is regardless of your viewpoint, what he said isn’t inaccurate, he saying that’s where these costs are associated with inflation, because the average consumer doesn’t understand it. He’s not wrong.

Thats understandable, but I wish we are just talking about chicken but everything has gone up. I might guess chicken prices raised because Ukraine war since a lot of the wheat or whatever comes from there. Quick glance on prices, prices are raising between 0.3%-3% on monthly basis , by end of year its going to go crazy. Thats not to mention price increases from last year.

Exxon $5.5B Q1/2022, doubled from a year ago

Shell Strongest quarterly profit in their history

Chevron Strongest quarterly profit in a decade

Meat prices up by double digits; Tyson $1B profits in 1Q22 (48% more than 1Q21)

Robert Reich 8 Jun 2022

(and I know I have, somewhere in my notes, the increase in wealth for Amazoid and others during the Pandemic, couldn't find it quickly)

This is what is confusing me, they say prices increase because costs increase but all i am seeing is corporates making a lot of money.

In reality, if costs increase corporates should diminish their profit margin so they do not lose sales but this does not seem the case they are raising prices and profiting.

 

[OverTheHill]

My son is 18 and has never had a job. There are many, many opportunities where I live (Phoenix), but I am never going to push unskilled labor at fast food chains or other shops on him. As a customer I've seen how other customers abuse the staff. In a lot of stores, there is minimal staff and I'm left to wonder how they are being treated by their employer. Not something I want for my son.

If he can find something in his career field or some work that doesn't strictly deal with the public I'd be happy to support that. But I just see the looks on these employees faces and it's hard not to feel for them. Some of them literally look like the walking dead.

I don’t want to tell you how to raise your kid, but a crap job with low pay and angry customers builds character.

 

[OverTheHill]

Prices are rising like crazy there is like a jump every few days. Not only that but a lot of products are getting harder to find. Whats going on?

i understand in the COVID situation slower work caused less production which made products scarcer and prices probably rise but everyone is back to working and now and corporates should want to sell as much as possible.

The only thing i can think of is oil prices rising to above $100 per barrel but is that enough to cause all this chaos?

$15 minimum wage (the correct minimum wage is zero and this push for $15 means nothing now)
Cutting off domestic oil supply chain
Increased Fuel costs lead to increased production costs
People not willing to work anymore leading to understaffing and further increased production costs and supply chain issues
Pumping the economy with cash due to COVID
Raiding your home equity to buy stuff you can no longer afford

What could possibly go wrong?

And no, it’s not Ukraine.

 

[OverTheHill]

Thats understandable, but I wish we are just talking about chicken but everything has gone up. I might guess chicken prices raised because Ukraine war since a lot of the wheat or whatever comes from there. Quick glance on prices, prices are raising between 0.3%-3% on monthly basis , by end of year its going to go crazy. Thats not to mention price increases from last year.




This is what is confusing me, they say prices increase because costs increase but all i am seeing is corporates making a lot of money.

In reality, if costs increase corporates should diminish their profit margin so they do not lose sales but this does not seem the case they are raising prices and profiting.

Corporations are making more money because they are more sophisticated than they were in the past with revenue management. Airlines are a prime example. They finally figured out how to make money.

Corporations are not going to reduce their profit margins. They will make money when they can and lose money when they have to. if anything, they see a massive recession coming and are prepping for it so they can survive the recession. Are you saving for it? You better be. This one is going to be brutal.

 

[eyoungren]

I don’t want to tell you how to raise your kid, but a crap job with low pay and angry customers builds character.

I wouldn't know. The only customer service job I had was at a video store for a month. That's when I decided I didn't like customers - at all.

All of my other jobs (inventory, UPS, graphic design) have served internal customers. My son is going into IT. He'll be serving internal customers too.

 

[PinkyMacGodess]

I don’t want to tell you how to raise your kid, but a crap job with low pay and angry customers builds character.

I worked a bunch of 'crap jobs' in my days, and it has raised my level of what I will do for money.

I've worked in agriculture, retail, restaurant, oil exploration, IT, education, plumbing/electrical/home improvement (trying to think if I left anything out).

Working the farms is a hell of a job. You work by, largely, nature's schedule. When you spray releaser on your crop and a sudden storm comes roaring in, you get your butt moving and your crew shows up and you save as much as you can. Happened to an orchard in the area I was working. Several crews showed up to help them. In the end, they lost way more than half their crop, but likely broke even for the year, which really hurt bad I'm sure. Retail? I had a family showup, having driven 3 hours looking for a Barbie Dream House (the one with the patio?), and we didn't have it, BUT we had the next best thing, and it was more expensive, and... I gave them my employee discount on it, wished them a Merry Christmas and got chewed out by the manager. The rest of the store love3d my gesture. Restaurants? I never ate at restaurants I have ever worked at, enough said. Oil exploration was a hell of a job. Lots of manual labor, and not much pay. I'd be gone, some days over 10 hours, and only get paid for 5 or 6. Yeah, it sucked. The rest is too much.

But I've met plenty of people that worked 'poop jobs' because they thought that was all they could get. Seen people at the brink of losing it all. Saw businesses that royally reamed every customer with high prices and horrible customer service. Seen management of some businesses ruthlessly screwing their employees, and appearing to enjoy it. Seen incredible waste and abuse. Insane coworkers, mentally ill management. Wow...

And through it all, while my parents were alive, they urged me to keep the jobs I had 'because it was a job', and watched them be tossed around by ruthless management over their careers. I don't know what 'character' is anymore, but I have decided what I'll put up with, and what I won't. I have walked out of jobs that I really hated, and stuck with ones that almost killed me. *shrug*

(I learned that the customer is NOT always right, too (I was fired from a job because of an angry customer who made a huge scene. As I was leaving, and the customer was smirking about getting me canned, the owner banned them from the store because me reacting to their BS was on me, but he wasn't going to put up with their crap any longer either))

 

[AlaskaMoose]

$15 minimum wage (the correct minimum wage is zero and this push for $15 means nothing now)
Cutting off domestic oil supply chain
Increased Fuel costs lead to increased production costs
People not willing to work anymore leading to understaffing and further increased production costs and supply chain issues
Pumping the economy with cash due to COVID
Raiding your home equity to buy stuff you can no longer afford

What could possibly go wrong?

And no, it’s not Ukraine.

It seems that we are going in wrong direction, and forecast point to a a tough economic future by the end of the year. Cutting off oil exploration and production hurts all of us. The article below was published a couple of years ago, but...

How Gas Prices Affect the Economy

Although economists may argue about whether gas prices have an effect on the economy, there is a connection between consumer confidence, spending habits and gas prices.

www.investopedia.com

The US oil production was reduced by 8% in 2020. What is holding back oil production?

What Is Holding Back U.S. Oil Production?

Here's why U.S. oil production has been slow to recover following the pandemic-induced production crash.

www.forbes.com

 

[Nhwhazup]

I live in NH and worked in HR for a manufacturing company for most of my career - retired now. NH has always had low unemployment and it has been difficult filling jobs since 2010. Right now the unemployment rate is the lowest it’s been since they started tracking it. Everywhere you look, jobs remain open. Supermarkets have deli and bakery departments closed for days - no labor. There aren’t enough people here to fill the jobs. During Covid it also seems like anyone that could afford to retire did.

The global price of oil remains super high and the oil companies keep rolling in the dough - no need to refine more oil. And if they did, they’d sell it where they can get the most for it - overseas.

So with the price of oil and labor super high = inflation.