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As Lumber Prices Fall, the Threat of Inflation Loses Its Bite

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Did I say it was?
Yes:

"I have said in several other threads that some level of inflation was expected as we recover from the effects of COVID-19. People stopped building, buying cars, eating out, traveling, etc. so the industries/sectors that were affected had to respond. For instance, rental car companies reduced their fleet capacity because there was no demand. When people started traveling again, the reduced capacity led to shortages of available vehicles."

Taking your example, rental car companies reducing their fleet capacity, and the resulting shortage as the economy opened back up, isn't inflation. It's just a supply and demand issue.
 

Airyaman

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Yes:

"I have said in several other threads that some level of inflation was expected as we recover from the effects of COVID-19. People stopped building, buying cars, eating out, traveling, etc. so the industries/sectors that were affected had to respond. For instance, rental car companies reduced their fleet capacity because there was no demand. When people started traveling again, the reduced capacity led to shortages of available vehicles."

Taking your example, rental car companies reducing their fleet capacity, and the resulting shortage as the economy opened back up, isn't inflation. It's just a supply and demand issue.
As individual items, no. But when several commodities, industries, etc. are affected by supply and demand and prices change to reflect, then you change the CPI. That is a measure of inflation.

 
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As individual items, no. But when several commodities, industries, etc. are affected by supply and demand and prices change to reflect, then you change the CPI. That is a measure of inflation.

Inflation is a general decrease in the buying power of the dollar over time. Short term changes don't indicate inflation, nor do changes of only certain goods / services.
 

Luce

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What’s your point?

Right now lumber prices are not declining. They are still extremely high. Eventually they will come down. A lot people will be financially ruined before that happens.

but I know it’s ok because we have a Democrat administration. To liberals everything is unicorns and butterflies when we Democrat administration.


But you're wrong.




1624633406905.png
 

Luce

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So you aren't getting the economic disaster you've been praying for. So sad.
 

Airyaman

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Inflation is a general decrease in the buying power of the dollar over time. Short term changes don't indicate inflation, nor do changes of only certain goods / services.
Tell the article not me.

And tell this WaPo article as well.

 

highroller

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$3 2x4s are gone for the foreseeable future, if not forever. I'm predicting they will settle in at about $4.50/$5.
Only if wages and salary increase. If not, the price will fall back to $3.

Price of a good is a function of income (everything else being equal)
 

Airyaman

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Only if wages and salary increase. If not, the price will fall back to $3.

Price of a good is a function of income (everything else being equal)
People are building now with houses costing upwards of more than $30k extra, they'll build if lumber does not fall to pre-pandemic levels as well.
 

highroller

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People are building now with houses costing upwards of more than $30k extra, they'll build if lumber does not fall to pre-pandemic levels as well.
But people also have to earn an higher income to be able to afford the more expensive house.
 

Airyaman

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But people also have to earn an higher income to be able to afford the more expensive house.
People with low wages aren't buying houses, they are renting.
 

TobyOne

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The lesson here is don't listen to the washington post or any other agenda driven news outlet.


Tell the article not me.

And tell this WaPo article as well.

 

highroller

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People with low wages aren't buying houses, they are renting.
I really don’t think society is worried about poor people and haven’t been since the 70s.

What I am saying is that price is a function of earnings in a society. If earnings go up, the price of goods can go up.
 

highroller

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Annnd inflation is here despite what the NYT and WaPo says. They're idiots:


Buy gold or commodities.
Oh no! 3% year-over-year!

Save your women and children it’s the end of the world!

we can start looking at inflation if it’s still at 5% in September.
 

Rexedgar

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I just bought lumber this week.

2x4 sheet of birch plywood $ 24.99 each

1x4x8 knotty pine. $ 13.99

looked at a 4x8 sheet of sheathing ant it was $ 75 and full of knots

Guess it will take a while for prices to come down around me…..
 

gino

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Anyone who doesn't see a tsunami of inflation coming our way is being naïve.
 

Luce

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What? please explain.

I showed you the commodity price index, which is shadowed by the retail price, and you threw a fit about "silly graphs".

Because math is hard, I guess.

I could argue the drop from $18 per 2x4 to $13 per 2x4 in the last 72 hours, trending to drop at an even sharper rate, but that's not why you're here. You're here because you are desperate for an economic catastrophe to validate your orange smear of an ex-president. It's the only thing right wingers value anymore.
 

Tahuyaman

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I just bought lumber this week.

2x4 sheet of birch plywood $ 24.99 each

1x4x8 knotty pine. $ 13.99

looked at a 4x8 sheet of sheathing ant it was $ 75 and full of knots

Guess it will take a while for prices to come down around me…..
I again went to price 16 foot treated 2x12's. Still $85.00 each.
 

Tahuyaman

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I showed you the commodity price index, which is shadowed by the retail price, and you threw a fit about "silly graphs".

Because math is hard, I guess.

I could argue the drop from $18 per 2x4 to $13 per 2x4 in the last 72 hours, trending to drop at an even sharper rate, but that's not why you're here. You're here because you are desperate for an economic catastrophe to validate your orange smear of an ex-president. It's the only thing right wingers value anymore.
I'm wondering how you connected this subject to nationalism. You make some strange comments.
 

Luce

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I'm wondering how you connected this subject to nationalism. You make some strange comments.

Where did I mention nationalism?

It's more of a cult thing.
 
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