Economic indicators tell a clear story in good times but go crazy when there is a crisis.
I psychology of inflation is different than the past, because people have so little experience with it and don’t really believe in it.
It used to be that inflation fueled spending because people figured they should buy it now because it will cost more later. They’d figure there is no point in saving because the value of money will get eroded.
Today people see a Big Mac meal costs $9.99 at McDonalds and think “I can’t afford that!”, gas is $4.99, diesel is close to $7 and people think they have to stop the bleeding by hitting the brakes on consumption.
I think supply chain problems are taking a bite out of demand. I have wanted to buy equipment for my photography/art hobby and I can’t get it. I am saving money until it is available, not buying something else.
I psychology of inflation is different than the past, because people have so little experience with it and don’t really believe in it.
It used to be that inflation fueled spending because people figured they should buy it now because it will cost more later. They’d figure there is no point in saving because the value of money will get eroded.
Today people see a Big Mac meal costs $9.99 at McDonalds and think “I can’t afford that!”, gas is $4.99, diesel is close to $7 and people think they have to stop the bleeding by hitting the brakes on consumption.
I think supply chain problems are taking a bite out of demand. I have wanted to buy equipment for my photography/art hobby and I can’t get it. I am saving money until it is available, not buying something else.