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While land is constrained and should probably be dealt with separately, wouldn't the price increase in consumer goods, i.e. the grocery store to use your exampl
by Frondo 6y ago
While land is constrained and should probably be dealt with separately, wouldn't the price increase in consumer goods, i.e. the grocery store to use your example, require collusion between every merchant?
Isn't the other part of Adam Smith's supply and demand stuff the idea that competition will drive down prices? Sure, everyone's got another $2,000, but if I can undercut the guy who's trying to mop it all up, wouldn't I? And wouldn't someone else try and undercut me?
Wouldn't that bring prices down? And if not, why not? If there's another larger force at work keeping prices high and keeping people in poverty -- and if poverty is something we want to do something about -- doesn't that suggest that we need to constrain sellers' behavior in some ways we aren't really doing now (like laws against gouging)?