Psst: You want to know the truth about inflation? (It's not what the Fed thinks it is.)

[RandomGuy]

https://mattstoller.substack.com/p/c...0-of-inflation

So basically Robert Reich is right. muh inflation is due to a free market failure, and not anything else.

[Winehole23]

So basically Robert Reich is right. muh inflation is due to a free market failure, and not anything else.

It's a both/and for me. I don't rule out 13 years of zero bound interest-rates and Federal Reserve QE, it's the main cause of the run up in housing costs.

"Demand pull"

[Winehole23]

Also, excessive emphasis on short term profits has hollowed out resiliency, the lack of which provides opportunity for companies with pricing power to screw customers when the supply chain breaks down.

In my opinion, what’s caused all the supply chain bottlenecks is modern finance’s obsession with Return on Equity (ROE). To show great ROE, almost every CEO stripped their company of all but the bare minimum of assets. “Just-in-time” everything with no excess capacity, no strategic reserves, no cash on the balance sheet and minimal investment in R&D. We stripped the shock absorbers out of the economy in pursuit of better short-term metrics. Large businesses are supposed to be more stable and resilient than small ones, and an economy built around giant corporations like America’s should be more resilient to shocks. However, the obsession with ROE means that no company was prepared for the inevitable hundred-year storms. Now as we’re facing a hundred-year storm of demand, our infrastructure simply can’t keep up.

https://noahpinion.substack.com/p/in...eo-of-flexport

[RandomGuy]

Also, excessive emphasis on short term profits has hollowed out resiliency, the lack of which provides opportunity for companies with pricing power to screw customers when the supply chain breaks down.

https://noahpinion.substack.com/p/in...eo-of-flexport

I foresee a bit of a slinky effect. We are going to stretch out, the companies are going to leverage to meet demand, then when that happens we will likely over-adjust and hit a slowpocket of growth, as everything struggles towards equilibrium.