Everywhere you look there are factors that are driving up prices. Supply issues and crazy wild pent-up demand. Resignations, retirement and WFH has led to super tight labor market and rising wages. I know people who are working from home for two different companies. If their boss knows it, he/she isn't saying anything, they are taking what they can get.
The only thing that was really a choice was the stimulus, and with something like covid how do you really know what the right amount is? Everyone said that 2008 was so painful because the stimulus wasn't enough. Easy to say in hindsight.
Our company really needed that first round of PPP and didn't really need the second round. Of course we took it. And we paid most of it out to our employees. I'm one of the owners of our company of 14 people and last year 5 of our employees made more than I did. We had to give them money or they'd quit, and we'd be in big trouble.
Two of them did quit and we are paying a fortune to head hunters, to find us employees who aren't exactly motivated. I had an employee tell me the other day she was avoiding me because whenever we spoke, I gave her something to do. She spends a couple hours a day making personal calls and doesn't even attempt to hide it. We lost an employee to a competitor in January who left after getting a 20% raise in October, a huge bonus and profit sharing in December. It may sound like I'm complaining, but I know it's just capitalism. I'm part of the system, I have to cope with it. There's a lot wrong with pure capitalism but it has benefited me my entire career.
All of it is leading to record demand with limited supply.
The war is also a factor, limiting energy and food (grain) supply.
I guess that is pretty off topic huh.
