NEWBY: Economics will impact local communities | Local News | – Mcalester News Capital

by | May 31, 2022 | Financial

I received a few responses last year when I wrote on the topic of inflation and the negative impact on our local communities.Many indicated inflation wasn’t going to be problematic and we had nothing to worry about. Let me repeat a quote I used then that is appropriate now. Kevin Brady said, “Inflation destroys savings, impedes planning, and discourages investment. That means less productivity and a lower standard of living”. While directed at every American, it is also directed at every business and community. Let’s revisit inflation, product shortages and labor costs and how that impacts every community, regardless of size in a very big way.We have all heard of the law of ‘Supply and Demand’. The concept of ‘supply and demand’ usually determines the price we pay for our goods and services. As we have seen since the dawn of civilization, when demand outpaces the available supply, prices will escalate. Inversely, when the demand falls, prices will tend to fall and equalize over time as well. This makes sense and most people understand this basic economic concept.
Another basic law indicates high prices are often cured by the impact of high prices. There may be a few exceptions to this rule, however when the economy is allow …

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