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Is Inflation Coming?
Depending on your answer to this question, now might be the time to invest in equipment, or it might be a good time to hire.
Former Editor-in-Chief, Additive Manufacturing
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For any manufacturing facility that is looking to increase its capacity, a significant factor to be considered right now is the question of whether continuing inflation is on its way. In various areas, prices have risen. Do these rises portend a significant, general rise in price levels throughout the economy? If yes, then adding high-end equipment using borrowed funds is a good idea, but hiring ought to be minimized. If no, then now might instead be a good time to hire.
Recent actions of the Federal Reserve provide the main reason to expect that inflation might be coming. The Fed’s second quantitative easing, or “QE2,” involved creating a pile of money as big as the cruise ship of the same name. (I exaggerate.) Yet those actions of the Fed () might not automatically produce 1970s-style price increases. In fact, there are reasons to suspect they won’t. Read more here.
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