Inventory costs and levels have decreased relative to GDP over the past two decades mainly because of advancements in technology and improvements in supply chain management. Companies have become more efficient in managing their inventories, reducing costs associated with holding excess stock and minimizing the risk of obsolete inventory. This is often achieved through the adoption of modern inventory management techniques like just-in-time systems and lean manufacturing. This trend is generally good for the economy. It frees up capital that can be invested in other areas, boosts productivity, and encourages innovation. However, there are potential downsides, such as increased vulnerability to supply chain disruptions and challenges in meeting fluctuating demand. Overall, while reducing inventory costs can lead to economic benefits, it's crucial for businesses to maintain a balance between efficiency and resilience in their supply chains to ensure long-term success