Why Prices Never Come Back Down... Ever

Consumer prices will not return to pre-pandemic levels due to economic impossibilities rooted in how businesses adapt to price shocks. A simplified business model illustrates that increased costs across inputs necessitate higher prices, leaving businesses struggling to maintain profits. Reversing this would require a coordinated, economy-wide reversal of costs, an unfeasible scenario. Disinflation, often misunderstood, only means prices stop rising, not that they decrease. Workers bear the brunt of these changes, facing reduced purchasing power and job opportunities as businesses cut costs. Historical examples from the post-war era reinforce this pattern, where price levels shift upwards and remain, differing from the 2020s due to a weaker economic foundation.