Restaurants and retailers nationwide continue to either shut down or downsize. Max Gillman, Hayek Professor of Economic History at the University of Missouri-St. Louis, said inflation is one of the main culprits.
“The episode that we had from 2021 to 2023, we had 9% in the peak in 2022 inflation, and like a total of maybe a 20% price rise or 25(%),” Gillman told Missourinet. “This price increase is never going to go down.”
Another factor is wages. Gillman said if net pay does not keep up with inflation, that translates to fewer people eating out. As for retail outlets, online shopping continues to chip away at brick-and-mortar stores nationwide.
“Amazon deliveries are skyrocketing,” Gillman said. “So you know, the redistribution of sales does put a continual pressure on these retail chains to survive.”
Gillman said inflation and supply chain issues are also making it harder for retail outlets to stay open.
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