Decimator714 t1_j5fqyh7 wrote on January 22, 2023 at 6:18 PM

Reply to comment by Slyguybuyfry in What High Tech and Media Layoffs Say About the Economy by PleaseThinkFirst

I don't know how it's not pretty obvious that printing 2 trillion dollars is going to cause massive inflation...

Slyguybuyfry t1_j5ftiib wrote on January 22, 2023 at 6:34 PM

Hey it’s easier to downvote with zero economic knowledge and just believe in your feelings instead.

I mean come on. Isn’t it obvious? Companies just decided to charge more money because they wanted bigger executive compensation packages, and consumers are so on board with this that we also decided to buy at record rates. 🙃

rulesforrebels t1_j5g9o83 wrote on January 22, 2023 at 8:18 PM

Why is this just happening now? Why is this just so coincidentally happening after printing 2 trillion at a time when nothing was being made and produced and trade and movement stopped around the world

Slyguybuyfry t1_j5glfia wrote on January 22, 2023 at 9:31 PM

Well this is an incomplete take. That is but one factor, that helped drive demand. Through most of the last two years, we've been producing at unprecedented rates.

It's really a perfect storm of stimulus being slightly overdone, as a result demand being through the roof, while supply chains are intermitantly in dissaray, and labor shortage due to lack of immigration and periodic covid lockdowns and outbreaks in the workforce. Plus so many retired early as a result further creating a labor crisis. All that futher compounded by the rise of IoT and lockdown markets driving demand higher on tech. Everything needs a chip yet chip production was still 10 years behind.

Lot of supply side inflation here. Thats why interest rate hikes are taking such a long time to take effect, its an indirect way to impact the situation.

rulesforrebels t1_j5hmg98 wrote on January 23, 2023 at 1:39 AM

We dont produce anything everything we consume is produced by China and they just opened back up

Slyguybuyfry t1_j5hpveq wrote on January 23, 2023 at 2:03 AM

Eh depends on the industry. China is a big mfg for sure. Not sure what that had to do with my point tho. I was talking global.