Jeff Snyder

Not money printing.

Not money printing.

What happened was it's called a supply shock, which is an imbalance between demand and supply.

So you have demand and supply that completely plummeted during the lockdowns.

When they came back, demand started to come back, but supply couldn't.

It was restrained.

People were home.

They couldn't work.

We couldn't get stuff shipped from overseas.

So demand came back faster than supply, and this is basic economics.

What happens when demand is growing faster than supply is?

The only way to reconcile those is prices have to rise.

Think about it as an auction process.

If you have an auction where a ton of people show up and there's only a couple sellers, the sellers are going to get huge prices for it.

So because supply was restricted, that's why it's called supply shock, prices had to rise to meet for the rising demand.

Now, what should have happened, what the government said was going to happen, was that we are going to do all these stimulus plans.

We're going to give money to people.

And what that's going to do is that's going to temporarily stimulate the economy so that the process I talked about, where incomes would start to rise and then slowly over time, they would offset and exceed price changes.

But that never happened.

because stimulus never really actually stimulates.