PPP, expanded unemployment, and various other “helicopter money” programs provided easy money for businesses and individuals across various stimulus programs. As a result of zero interest rates, money poured into other riskier assets such as real estate and alternative assets in search of yield. Despite broad pay raises, real wages (accounting for the net effects of inflation) have declined resulting in everyday Americans struggling. BloombergWithout the support of stimulus money and low interest rates, demand has slowed down. Combined with the excess ordering that businesses made to prepare for future demand that never materialized, businesses now are left with excess levels of inventory.

Source: Forbes June 16, 2022 19:11 UTC