HACKER Q&A
📣 antiterra

What Is Happening, with Everything?


Has anyone found a decent take on what's going on right now in regards to the insane levels of retail demand? I'm aware that there are chip shortages and shipping shortages, but is that all there is to it?

It seems like this demand should result in price inflation, but that most companies are holding their prices, which results in a cyclical escalation of demand via arbitrage/scalping.

It seems to be across all kinds of products except, perhaps, food: Pokemon cards, cars, tech gadgets, crypto and even real estate (though this results in overbidding as much as arbitrage seeking.)

Is there risk of serious financial damage if:

A. The scarcity continues, and prices eventually creep up to match demand ( I've seen a few things go up in price, e.g. a Breville Smart Oven Pizzaolo oven that was $800 last year is now $1000, but most stuff is staying where it was.)

B. Supply catches up with demand and prices drop while inventory skyrockets


  👤 AnimalMuppet Accepted Answer ✓
I am not an economist. But I think it's that people mis-estimated future demand months ago. (I've seen statements that this is the case with chips for automobiles.)

People thought that the economy would shut down for Covid. So they planned to produce less. They ordered less in the way of parts and supplies to produce finished goods.

Then demand didn't drop, and everybody got caught short.

Why is food different? Because nobody planned on a drop in demand for food. The economy may shut down, but people still eat.


👤 ApolloRising
Miners have bought up all the graphics cards to do crypto, shortage drove up price, scalpers keep the price up with bots buying everything.

US Govt over spent the insane amount of stimulus money in the wrong places instead of on the people themselves during a crisis. Inflation is going to happen and many middle class goods are going to increase in price as a result.

If we did not have a vaccine it would have been much worse...