Thursday, December 30, 2021

Not Terrible News

 When I watch economic analysis on TV or read articles, I wonder how stupid do they think Americans are?  If prices go up for say beef, we will buy more pork and chicken.  I'm aware there was an initial surge in prices as we saw demand return to pre-pandemic levels and supply couldn't keep up, but with the exception of the very poor it was a manageable problem.   I don't see inflation getting much worse, in fact I expect it has probably peaked from my personal observation.  Gasoline and most food has recovered from their highs and while still higher than the pandemic lows, not getting worse.

I guess the statistics will verify or not verify that, and the year over year comparison will remain high.  I am more interested in the month over month which tells you the current state of prices.  

We seem to be in a labor shortage and that might impact demand as wages rise to attract workers.  Increased wages will end up as increased prices. This might be an artificial labore shortage that will end soon, the causes are still being determined.  Even then it can be solved fairly easily once we get past the pan-demic issues.

It might not seem like it but Omicron is the variant we needed to end the Pandemic.  While easily spread it seems to be milder than the others and will help to transition the virus into an endemic disease like the flu.  Since it is so infectious and often apparently very mild it will assure herd immunity.

Yes, it might still be deadly for some, but so is the flu.  The answer is get vaccinated which greatly reduces the risk.  


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