The Federal Reserve says we will see inflation but it is “transitory”. Congress does not even mention inflation even though it is the most regressive tax out there. But if you want to know the real deal ask real operating businesses and their operators. In the quote below Tom Gayner, the CO-CEO of Markel and the one person responsible for Markel’s “Ventures” segment, discussed this past week how the economy is doing according to his varied businesses. And inflation is real and at odds with news reports and comments from officials. It’s here. Will it stay? That’s the question.
Economic activity and order books are very good. There is plenty of business to be had. And we’re getting our fair share of fulfilling orders and producing goods and services is getting harder. Our ventures CEOs use new words like supply chain roulette when describing the daily realities of their business. Labor shortages and inflation are facts of life. Your team is doing an outstanding job of coping and adjusting with the realities on the ground. But what I see in real-time from real businesses seems different than many news reports and comments from officials about inflation.