The Law of Supply and Demand: Or why are prices falling?

Prices (mostly) are governed by the law of supply and demand which governs how prices fare worldwide.

So, when people don't buy things but they still need to be sold and it costs to store things in warehouses, those people want to move those items so they don't have to pay rent on things just sitting there in their warehouse because they lose money doing this.

So, prices are going to fall of those things if they are not being sold. This is logical from any business perspective or model.So, there is no way to prevent these items from dropping in price from this point of view (Unless the government stepped in and set a price at one level or another which usually isn't useful to do except in extreme emergencies.

However, companies in order to produce those things have a minimum price that they can afford to sell those things for. IF they can't reach that price then they will stop making those things entirely and either make something else or go out of business completely.

This is how all this really works. So, the consumer might be really happy to see prices drop on a lot of things. But, eventually there won't be ANY of those things that they might need if the price drops too far.  Because people will stop making those things. (at least in this country).

So, this is the problem of prices dropping right now.

However, Food will continue to go up in price because people still need food to eat. So, food prices likely are going to skyrocket over time along with water clean enough to drink. So, the things that might drop in price the most will be luxuries and because of this many luxuries won't be made at least in the near future in this country because of prices dropping because people aren't buying these things.

So, food prices going up because of supply chain disruptions like Tyson plants closing because of deaths to workers from coronavirus in meat processing plants.

But, I'm thinking the worst supply chain disruptions regarding food and drinking water is going to be between September and October and probably April or May of 2021. So, because of this growing an organic victory garden will assure you of having some live food to eat between now and this time next year. So, I would advise everyone to think about how they are going to grow things like Tomatoes and carrots and beans of various kinds and squash and zucchini and the like between now and the fall at harvest time.

Because it is likely that you might need live food like fruit and veggies to stay healthy between September 2020 and May of 2021 if food supply chains slow down or stop during this period of time.