The Economy - Where is the ideal spot?
What are some of the ways that prices will come down from their elevated levels of the pandemic?
1. The Balance - prices don’t go down but they don’t go up either with very little inflation - just enough to spur a little continued growth and widening of the economy. But this may also mean a slow down in wage growth.
2. SLOWEST sales - that one is up to us - the buying public - (very little inflation)
3. SLOWER to NO Sales but production is covered - again up to us - but a more drastic maneuver than #2 because growth is also stymied to a certain extent so hiring and wage growth would also be reduced. (stagflation)
4. NO Sales and an abundance of inventory - the fastest way to reduced cost but this may be a curse because it would involve many layoffs and perhaps a Recession or an even more drastic Depression. (deflation)
I know many of you are waiting for some prices to really come down especially in rent, food and other commodities but to be perfectly honest, will they actually come down without us suffering from an economic downturn?
Auto insurance could come down if we stopped having car accidents, car thefts, bad weather destroying cars or even less people driving around without insurance or being UNinsured.
But what is gonna make rent go down? Supply of desirable rentals that are offered at affordable rate? What is an affordable rate ?
What is an affordable anything except the price that one is willing to pay for that thing.
So what is your description of a healthy, robust American economy and how would you think we could get there?