Tuesday, October 03, 2017

Again on inflation

nb. With regard to inflation, I recently saw photos and stories on Facebook of empty shelves on grocery stores in Brooklyn. This is more evidence of hidden inflation, our collective failure to appropriately price labor, or rather, or reluctance after years of low prices to accept the actual cost of labor. The stores should be paying people more to stock shelves, and these higher costs should be reflected in the prices paid.

I'm sure, in fact, that that is what is happening. People are getting the things they need from stores, but instead of paying higher prices at a given distribution point, say, Trader Joe's, they are going to another store and buying it, spending more time shopping, perhaps paying more.

Or maybe they will buy more  from Amazon.

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