The Holiday tale of Inflation, supply chain, and the Omicron variant
By: Damian Arzabala
(Credit: Shutterstock)
As we enter the peak of the 2021 holiday season, the effects of the ongoing pandemic are center stage throughout the country. The news is filled with talks of higher inflation rates, supply chain issues, and the Omicron variant, but what does all of this actually mean?
As of late you may have realized that prices seem to be a little higher than they normally are. From food to toys, everything has slowly been creeping up in price due to inflation. Inflation, being the rise in prices for goods and services, ultimately means that our dollar has less purchasing power than before. This year, the country has hit the highest level of inflation since 1982. The exact reason as to why this inflation level of inflation is taking place can not be narrowed down to one singular thing as there are many factors that play into this. One of the biggest and often most attributed to these issues would be the ongoing pandemic. Whether it be oil supply or supply chain issues, a lot of the blame goes back to the virus.
While doing some holiday shopping this year you may have noticed that a lot of things are taking much longer to ship than we are used to. The biggest culprit are the supply chain issues we are facing at the ports. Due to the pandemic many people resorted to shopping online more than usual and as such, there has been a hold up of products at the ports. Due to the lack of proper infrastructure there have been many delays in shipping times throughout the country. What these supply chain issues have caused are an increase in demand for all sorts of goods, and because many sellers have not been able to keep up, this has only further contributed to the inflation. Additionally due to not being able to get these supplies from overseas as easily, sellers have resorted to raising prices.
The news is filled with talks of the new Omicron variant, but how does this play into the economic state of the country? As more people do their best to return to a new normal, the truth is that the pandemic is only growing in numbers. With inflation and covid on the rise, this holiday season may prove to be a turning point for the economy and may even be a sign that we are headed towards a recession for the first time since 2007. As the holidays reach their peak, it’s important to remember to follow the news and remember to be safe- not just to protect yourself from the virus but also to hedge yourself against the tumultuous turn the economy could possibly take.
As we enter the peak of the 2021 holiday season, the effects of the ongoing pandemic are center stage throughout the country. The news is filled with talks of higher inflation rates, supply chain issues, and the Omicron variant, but what does all of this actually mean?
As of late you may have realized that prices seem to be a little higher than they normally are. From food to toys, everything has slowly been creeping up in price due to inflation. Inflation, being the rise in prices for goods and services, ultimately means that our dollar has less purchasing power than before. This year, the country has hit the highest level of inflation since 1982. The exact reason as to why this inflation level of inflation is taking place can not be narrowed down to one singular thing as there are many factors that play into this. One of the biggest and often most attributed to these issues would be the ongoing pandemic. Whether it be oil supply or supply chain issues, a lot of the blame goes back to the virus.
While doing some holiday shopping this year you may have noticed that a lot of things are taking much longer to ship than we are used to. The biggest culprit are the supply chain issues we are facing at the ports. Due to the pandemic many people resorted to shopping online more than usual and as such, there has been a hold up of products at the ports. Due to the lack of proper infrastructure there have been many delays in shipping times throughout the country. What these supply chain issues have caused are an increase in demand for all sorts of goods, and because many sellers have not been able to keep up, this has only further contributed to the inflation. Additionally due to not being able to get these supplies from overseas as easily, sellers have resorted to raising prices.
The news is filled with talks of the new Omicron variant, but how does this play into the economic state of the country? As more people do their best to return to a new normal, the truth is that the pandemic is only growing in numbers. With inflation and covid on the rise, this holiday season may prove to be a turning point for the economy and may even be a sign that we are headed towards a recession for the first time since 2007. As the holidays reach their peak, it’s important to remember to follow the news and remember to be safe- not just to protect yourself from the virus but also to hedge yourself against the tumultuous turn the economy could possibly take.
