All the talk these days is about inflation, rising prices. The first lesson of economics is the law of supply and demand. When supply is greater than demand, prices drop, and when demand is greater than supply, prices rise. Today, demand is greater than supply, so prices are rising.
Thanks to the Biden administration’s focus on jobs, jobs and more jobs, workers are seeing record-low unemployment and the highest wage growth in decades. This has increased demand while corporations have not yet increased supply to meet it. The result is higher prices and record profits — business profits are up by almost 40% over pre-pandemic levels.
We could go back to the bad old days of voodoo economics that turned billionaires into multibillionaires and kept unemployment high and wages low; or we could simply wait for corporations to ramp up production to meet this increased demand. I know which one I choose.