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I don't think inflation by itself is an adequate explanation. If inflation was happening in isolation, you would expect labor prices (wages) to increase as well

I don't think inflation by itself is an adequate explanation. If inflation was happening in isolation, you would expect labor prices (wages) to increase as well, which they have not been for the most part.

nateabele 9y ago
That's a fair point. My guess would be the other compounding exponent, increased productivity through technology, has held down demand.