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To: blam
I dont think demand destruction will occur for quite a good while...from https://www.investopedia.com/demand-destruction-5222107

When inflation occurs, prices tend to rise generically across all sectors of the economy. As a result, higher gas prices may also be met with higher vehicle prices, higher food prices, and higher housing costs. In such a case, demand destruction is less likely since all alternatives become more expensive at the same time.

10 posted on 05/17/2022 12:58:51 PM PDT by frogjerk (I will not do business with fascists)
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To: frogjerk

Demand destruction during inflation is very complicated.

On the one hand folks believe they need to spend money now before it becomes worth less in goods and services.

On the other hand folks feel they need to save for the hard times ahead as inflation eats away at their savings.


28 posted on 05/17/2022 1:31:48 PM PDT by cgbg (A kleptocracy--if they can keep it. Think of it as the Cantillon Effect in action.)
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