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At least part of this doesn't make sense. Why would giving people more money cause food price inflation? Were they not eating before? Did the demand for food sk
by AlexandrB 4y ago
At least part of this doesn't make sense. Why would giving people more money cause food price inflation? Were they not eating before? Did the demand for food skyrocket because people had money? Unless you're suggesting that food prices rose because food producers saw they were leaving money on the table, but this seems like a problem that could be solved with antitrust since collusion would be required to "artificially" raise prices in concert.
- creato 4y agoPeople change their food choices when they have more money, yes.
- robertlagrant 4y agoFMCG businesses try extremely hard to keep their costs low because their margins are razor thin, because competition means they must. If people feel comfortable paying even slightly more for goods, then the massive efforts to keep prices down can relax ever so slightly, and they can make more money in other areas (e.g. putting the money into decor or other nonessential feelgood factors that consumers will prioritise over prices).