Why Are We Having Inflation
I have some bad news and more bad news regarding inflation within the United States of America, which can also apply to certain other nations with similar demographics, such as the United Kingdom; for one, Covid 19 is no longer a prime factor for inflation.
Regarding the requirements of having certain goods and services internationally, according to geopolitical analyst Peter Zilhen, it takes around 18 months for supply chain demands to change to meet the supply needs of the consumers.
The United States great news is it is finally emerging from its COVID mask of changing consumer behaviour and the crazy supply chain dynamics.
What this means for the average consumer is that we are finally settling into a more stable consumption pattern with supply chains that are finally caught up with the consumer’s demand, so headline inflation is decreasing.
Now we come to the bad news that we are entering a two-decade period of Labour shortage due to the retirement of half of the baby boomers; these are people born between 1946 and 1964, the largest generation ever born.
With this mass retirement and most boomers most likely dead by 2040, this leads to a massive labour shortage gap, with the Zoomer generation born between 1997 and 2010 unable to meet the labour demands.
There is currently a labour shortage within the United States of America of over 400,000 people due to not having enough Americans within the United States and the Zoomer generation not being large enough to meet the labour force demands.
That shortage will only increase and worsen as we enter the mid-2030s.
While it’s nice to see COVID finally in the rearview mirror, we’re coming up with something much stickier that will plague our inflation rates for a while.
If there aren’t enough workers, companies may have to increase their salaries and other company benefits to attract more workers or even import workers from foreign nations.
Which relieved the expense being passed on to the consumers, increasing inflation.
Four people reading this from the United Kingdom, Canada and Australia are not at population replacement levels in terms of birth rates, and those nations have particularly relied on immigration since the 1960s to maintain a stable population level.
A long-term solution for the United Kingdom is not to empty the Sub-Saharan African continent of all its young people because that does not solve the issue; it causes more problems, and the issues behind the lack of new birth are social, economic and health-related.
