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Posting a reply to: Re: boat shortage

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[QUOTE]North of 8 - 5/17/2021  11:45 AM

[QUOTE]raftman - 5/17/2021  9:09 AM

[QUOTE]TCESOX - 5/16/2021  4:07 PM

The stimulus money, on the other hand, has been used by many, to pay off credit cards and buy toys like TVs, up-grade boat electronics, new trolling motors, etc.  Which is what it was intended for - to stimulate spending to keep businesses from experiencing a gigantic loss of business and causing a huge ripple effect in the economy. 
.[/QUOTE]

Is this a good thing though? We artificially increase demand on things that can't be easily replaced for a variety of reasons and now we have shortages.  When I walk through the hunting and fishing aisles at fleet farm there still are a lot of bare shelves.  I don't think there's much of anything that isn't in short supply right now.  I'm hoping the recent rise in inflation levels off but I'm a bit concerned all of this money just being dumped into an economy that isn't showing any ability to replace the goods being bought is going to lead to a long recovery and the people advertised as being the ones we need to hurry up and get money to when they sell these stimulus plans will be hurt more than anyone.[/QUOTE]

Valid concern.  The one bit of news that eased my concerns about inflation was that almost a third of the April consumer price index increase was the cost of used vehicles, not a broad increase.  Also, April of 2020 saw so little economic activity, the year to year comparisons may be greatly skewed.  But, you are correct that when you pump a lot of money into the economy, in particular when it flows to folks lower in the economic ladder, it may cause inflation.  But then we expected that low interest rates that started way back when W. Bush was president would not last, but they have.   A lot of economic truisms have been turned on their head in the last decade.[/QUOTE]

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North of 8

Posted 5/17/2021 11:45 AM (#979967 - in reply to #979961)
Subject: Re: boat shortage

raftman - 5/17/2021 9:09 AM

TCESOX - 5/16/2021 4:07 PM

The stimulus money, on the other hand, has been used by many, to pay off credit cards and buy toys like TVs, up-grade boat electronics, new trolling motors, etc. Which is what it was intended for - to stimulate spending to keep businesses from experiencing a gigantic loss of business and causing a huge ripple effect in the economy.
.

Is this a good thing though? We artificially increase demand on things that can't be easily replaced for a variety of reasons and now we have shortages. When I walk through the hunting and fishing aisles at fleet farm there still are a lot of bare shelves. I don't think there's much of anything that isn't in short supply right now. I'm hoping the recent rise in inflation levels off but I'm a bit concerned all of this money just being dumped into an economy that isn't showing any ability to replace the goods being bought is going to lead to a long recovery and the people advertised as being the ones we need to hurry up and get money to when they sell these stimulus plans will be hurt more than anyone.

Valid concern. The one bit of news that eased my concerns about inflation was that almost a third of the April consumer price index increase was the cost of used vehicles, not a broad increase. Also, April of 2020 saw so little economic activity, the year to year comparisons may be greatly skewed. But, you are correct that when you pump a lot of money into the economy, in particular when it flows to folks lower in the economic ladder, it may cause inflation. But then we expected that low interest rates that started way back when W. Bush was president would not last, but they have. A lot of economic truisms have been turned on their head in the last decade.