Quote:
Originally Posted by thinkxingu
Among the things I am not savvy is product pricing, relationships, etc. Can you explain how beef prices will affect beer prices?
Also, as best I know, the increase in prices is the result of a series of setbacks—JBS cyberattack, leftover pandemic issues, increased exporting, etc.—combined with increased demand. I don't usually associate those types of events with inflation per se, but rather temporary glitches vs. long-term ratios of production vs. buying costs.
Finally, we saw meats bump in price almost one year ago as well, though most of how people discussed it was a simple recognition that factories closing/slowing down from Covid reduced the amount of product on the market. Why is this moment any different?
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I disagree--you're savvy!
We will not really know for another year or so, but the fundamental debate among economists on inflation today is whether we are seeing temporary hiccups such as you list above or a real underlying inflation driven by The Fed's push for low interest rates and deficit spending by government.
Great piece on this in the Times today. (I know some Republican pen pals do not like Paul Krugman, by he is a Nobel laureate, and this particular column lays out Think's question very clearly)
https://www.nytimes.com/2021/06/21/o...biden-fed.html