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@sabrdance: 'demand related' and 'supply related' aren't meaningful labels…

2026-08-07 · 15:07 UTC ·@sabrdance ·0 min read

Brief

Debate over whether recent price increases are demand- or supply-driven: @sabrdance rejects simple 'demand related'/'supply related' labels, arguing the system is dynamic and only a few supply shocks with inelastic demand occurred and aren't the main driver. Chris counters that demand is primary, citing SNAP spending doubling since 2019 and consumers paying high prices (e.g., $8 12-pack Coke).

Why it matters

@sabrdance: 'demand related' and 'supply related' aren't meaningful labels because the economy is dynamic; there have been a few supply shocks paired with inelastic demand, but those supply shocks are not the major driver of recent price moves.

Key details

  • Chris (@chriswithans): Most price increases are demand‑related; SNAP spending 'doubled since 2019' and consumers are willing to pay higher prices—example cited: a 12‑pack of Coke costing $8.
Source evidence

One of my minor rules of policy analysis is that "demand related" isn't a thing. Neither is "supply related," because the system is dynamic. We haven't had demand shocks, we've had a few supply shocks with inelastic demand -but that's not the major driver, either.

Chris (@chriswithans)

Except for a couple of exceptions, it’s mostly demand related. People are willing to pay those high prices for food. They’re not struggling. There are a lot of dollars out there. SNAP spending doubled since 2019. Like there’s no reason for 12-pack of freaking Coke to be $8, except that people are willing to pay that price.

— https://nitter.net/chriswithans/status/2085722914373198335#m