The New York Times reports that there is “a growing body of research” suggesting that “the spectacular growth of online shopping” is a major factor in “tamping down inflation.”
The reason is simple: E-commerce allows consumers to shop around for best prices, which discourages business from raising prices, even if their costs are going up. But this can be a problem, economists says, because two percent inflation is considered a target and “sweet spot” that keeps “the economy humming without overheating.”
This confluence of factors, the Times suggests, could be the reason that, while “unemployment is sinking and businesses are churning out more goods and services … prices and wages are climbing a lot more slowly than anyone has expected.”
The reason is simple: E-commerce allows consumers to shop around for best prices, which discourages business from raising prices, even if their costs are going up. But this can be a problem, economists says, because two percent inflation is considered a target and “sweet spot” that keeps “the economy humming without overheating.”
This confluence of factors, the Times suggests, could be the reason that, while “unemployment is sinking and businesses are churning out more goods and services … prices and wages are climbing a lot more slowly than anyone has expected.”
- KC's View:
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I’m not an economist, so my two cents worth on this one may not even be worth that. But it does occur to me that this does illustrate one fact o our lives - that as realities change, we may have to re-evaluate not just what measurements matter, but how things are measured. That’s not necessarily a bad thing … but it probably is a real thing.
