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Culture War Roundup for the week of May 1, 2023

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Does anyone think that the current massively inflated prices will ever fall? I'm still so pissed off about it, a year later. Due to the fact that much of my income is based on the company's stock, which massively fell the same time inflation went nuts, I make less money now than I did a few years ago, despite having been promoted and working harder than ever. Couple that with inflation making my money worth less, and it's a wonder I can afford any non-essential spending at all. Every single good that I buy has increased in price by very noticable amounts. Generally, many people may not have the same problem as me, where their income is based on stock, but still, most people's cost of living has greatly increased and their income has stayed the same. Prices have been so out of control lately.

Is it just the Russia-Ukraine war that's keeping prices so high, or is it more than that, like aftershock from the pandemic, lockdowns, and COVID relief spending upending the economy? What's the best to hope for? If the war ends, is all we have to look forward to a reduction in inflation, meaning that prices will stop going up? Or is deflation a possibility, to bring prices back down to previous levels? I know close to nothing about econ, but I always hear deflation talked about as if it's this terrible thing. I don't really know why, I guess just because it destabilizes the market, and makes outstanding debts larger. To me right now, my dollar being worth more sounds great. Is deflation immediately following inflation a bad thing if it just brings prices back to previous levels?

Hahahhh I feel your pain. I finally started making consistent decent money post-Covid and when I went to look at buying some of the luxury items I'd been looking forward to owning someday, I got massive sticker shock. I understand that prices tend to rise over time but one doesn't expect to see them DOUBLE, in some cases, over a mere three years.

Also, inflation 'rewards' people who took on lots of debt by devaluing said debt so I feel emphatically annoyed for taking pains to save/invest as much money as I reasonably could during the uncertainty of Covid times, when it seems like I should have racked up debt while interest rates were low. Although if recession hits that saved wealth might come in handy.

Honestly, I think the major factor currently pushing prices up aside from Covid spending is the ongoing labor shortage. Because whenever I go to price services the labor costs seem to be a driving factor in the price. Any construction job, food prep, or 'unskilled' labor (like lawn care or pool cleaning!) is just ridiculously expensive. Likewise, so many industries seem to be bogged down due to difficulty hiring enough people to fully staff up.

The inability to hire enough people to do the necessary work is going to have run-on impacts due to the drag on productivity. This ALSO creates upward pressure on wages but when there's literally not enough workers it puts a hard cap on economic activity.

Amazing to think that "FIGHT FOR FIFTEEN!" was a lefty mantra for raising minimum wage to a 'livable' level, then events transpired that made $15/hr pretty fucking standard in most areas as large companies get more desperate to hire.

The labor shortage was probably inevitable from generational effects.

That's my understanding, Covid just moved that timeline forward, a lot of people retired earlier than they might have, a lot died, etc.

Which is to say, no, the prices won't come down without some other large pressure coming into play.