4 ms·
> More money in the system doesn’t generally drive prices up in other areas due to supply and demand. Do you have an example? Supply and demand is exactly wha
by D13Fd 4y ago
> More money in the system doesn’t generally drive prices up in other areas due to supply and demand.
Do you have an example?
Supply and demand is exactly what drives the prices up. People have a huge supply of dollars due to financial aid loans, and cannot spend those dollars on anything but education. With more money available, schools charge more.
It’s the same mechanism as inflation.
- Retric 4y agoManufactured goods generally follow this trend of increasing total money being spent resulting in a lower cost per unit. Microwaves, toasters, dishwashers, flatscreen TV’s, etc are all vastly cheaper today than when they first hit the shelves. The best example bing transistors, we are dumping vastly more money into them and getting ever lower prices. Commodities often follow a similar trend with global Steel production resulting in lower prices per pound over long stretches of time. The trend is less obvious over short periods of time but compare steel prices every 50 years say 1820, 1870, 1920, 1970, and 2020. Some things like beachfront property are inherently in short supply, but it’s hard to argue that applies to collages across decades.