Also, let me put the contraction another way, and why you don't see the price effects immediately.
If you're a business selling flowers, how averse are you to raising prices? Yes, pass shit to consumers and all that, but if the price jumps are going to be serious, you'll scare people off with sticker shock. What about firing people? You actually need your workers, and it's pretty rough to just ditch people. They get upset.
You'll try to cut a lot of corners until you decide "fuck it, it's either prices go up, or we're done for." But what happens in inflation is that the price of everything is going up for everyone. So every business that exists in the marketplace now has to go through that. From the people who mine phosphate, to the farmers who produce manuver, to the soil and fertilizer retailers, to the seed producers, to the flower pot makers, all so you can sell your flower to a consumer. Each and every one has to go through that process one person and business at a time. So, it takes time for the effect to flow through the economy.
Just to be clear: even the global supply chain issues, that's not just California. It's also the shut down of workforces in 2020, now 2 years on. Each part of the system is being effected every step of the way, each in their own time.
I've said it before. Trump is probably thanking his lucky stars that he "lost", because if he hadn't I'm not sure he could have avoided this, and you would have had him taking this on the chin, rather than the Democrats.
Also, let me put the contraction another way, and why you don't see the price effects immediately.
If you're a business selling flowers, how averse are you to raising prices? Yes, pass shit to consumers and all that, but if the price jumps are going to be serious, you'll scare people off with sticker shock. What about firing people? You actually need your workers, and it's pretty rough to just ditch people. They get upset.
You'll try to cut a lot of corners until you decide "fuck it, it's either prices go up, or we're done for." But what happens in inflation is that the price of everything is going up for everyone. So every business that exists in the marketplace now has to go through that. From the people who mine phosphate, to the farmers who produce manuver, to the soil and fertilizer retailers, to the seed producers, to the flower pot makers, all so you can sell your flower to a consumer. Each and every one has to go through that process one person and business at a time. So, it takes time for the effect to flow through the economy.
Just to be clear: even the global supply chain issues, that's not just California. It's also the shut down of workforces in 2020, now 2 years on. Each part of the system is being effected every step of the way, each in their own time.
I've said it before. Trump is probably thanking his lucky stars that he "lost", because if he hadn't I'm not sure he could have avoided this, and you would have had him taking this on the chin, rather than the Democrats.