Something that I had not considered before so sharing.
Never thought about it but recent info is that manufactured goods are only 1/3 of a country like the US's GDP.Services are 2/3 of GDP.
Quote:https://www.mauldineconomics.com/fro...deflation-talk
"Goods are only one-third of consumption in the GDP accounts. Services are two-thirds. What I think is going to happen now is businesses are scrambling like crazy to keep up with demand. They can't. They got way behind. They're… double and triple and quadruple ordering. That's the first thing. The consumer, yes, has been spending aggressively on goods, but probably is about to shift the mix back towards services, maybe disproportionately. I think we're going to end up with a massive inventory problem towards the end of this year or into next year. We see three sources of deflation on the horizon. The first is that one, and that's inventory-driven and very commodities-oriented."
Can you imagine the amount of goods in inventory over the next year because businesses have ordered so much extra based on the demand of the past year where people could only spend on limited goods and mostly for the home. As restrictions are eased and life reverts to its new- normal which includes more service-based businesses, the inventory should rise substantially. Will that mean reduced prices for goods for us?