I don't know why people keep making a big mystery as to why inflation got out of hand. It's very simple:
Everything shut down during the pandemic. Nobody was working so nothing was being made. But governments were hurling out all kinds of financial aid, so people kept spending like nothing was going on.
That used up pretty much everything we had, so they started charging more for what they had left. Simple supply and demand.
But then as everybody went back to work, businesses figured they'd just keep on charging more. After all, everybody was used to it and they were making huge profits, so why not?
But now what they've done is charge so much more for so long that everybody is broke now. So now people are cutting back on spending, especially since there's no more government aid, no more tax breaks and no more special programs.
So all the companies are now laying everybody off and lowering prices to try to sell all the tons of merchandise they have built up over the last year and a half that they now can't sell.
I still can't believe we're not in a full blown recession already. The only reason we're not is because Wall Street's greed has deafened them to the fact that the music stopped 5 months ago, so none of them are running for a chair yet.
All it takes is just one of the big banks (looking at you, Goldman Sachs) to run for a chair (start offloading all their bad debt) and it is all over.
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