Experts: Americans’ willingness to pay more is keeping prices high

Experts say that this desire to make up for lost time during the pandmeic is driving up prices.

News 12 Staff

Jul 15, 2021, 10:07 PM

Updated 1,007 days ago

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The COVID-19 pandemic kept many Americans from doing many of the things that they once enjoyed. Now that the restrictions are loosening, many are once again going out and living their lives as they once were. And experts say that this desire to make up for lost time is driving up prices.
Westfield resident Lynn Schiller says that she was willing to pay more for a family vacation this year, along with other goods and services that have gotten pricier over the last few months.
“It was really expensive. But we were willing to do it because we haven’t been anywhere in so long,” she says.
That attitude is shared by many New Jersey residents, according to economic consultant Marty Cantor. He says that this is part of the reason why things are getting so expensive lately.
“It’s a consumer-driven inflation. And that’s a problem because consumers are willing to pay higher prices for hotels, higher prices for airlines and tourism and that’s what is driving the inflation,” Cantor says.
The inflation rate is the highest it has been since 2008. Other items that have seen price increases include energy, food and restaurants.
More than 35 million American families are now eligible for Child Tax Credit payments, under a plan by the Biden administration. Those tax credits will put extra funds in many people’s pockets to help offset the rising costs. But Cantor says that as long as New Jersey residents are willing to cover the inflated prices without any reluctance, the more it will stick around.
“We’ve been cooped up for so long that we’re willing to do what we can to enjoy life again,” says Schiller. “But eventually we’ll recoil from it and say, ‘This is ridiculous.’”
The Department of Labor announced earlier this week that consumer prices increased 5.4% for the year, ending in June.


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