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0 pointsthrow_nbvc12344y ago0 comments

> I disagree, we are having inflation because of supply bottlenecks, not because of demand.

I've seen this multiple times but what's the underlying evidence for either side. If demand goes up and the supply can't increase to follow, it'll look like a supply issue but ultimately caused by demand. What's ultimately the difference?

Is the idea that if the supply chain is scaled for X then moving from X-2 -> X is easier then X -> X+2?

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smashem4y ago

It's systems + networks analysis.

Factories, ports, and transportation were limited or shuttered completely. Warehousing and storefronts saw the same.

Impairing these network nodes, all at relatively the same time and in great numbers, had gigantic consequences.

And if the supply network is severely damaged, it ultimately means supply will go down.

andrekandre4y ago

  > it'll look like a supply issue but ultimately caused by demand

true, but is demand actually higher than pre-pandemic or is it just returning to previous levels (where broken/damaged supply chain issues are now showing up)?

throw_nbvc1234OP4y ago

exactly, what data would someone look at to decide which came first; the supply crunch or the demand increase. and does the distinction even matter?

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