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>People pay for it because they don't have a choice. But that money has to come from somewhere. Money is not infinite from the perspective of any individual a
by dsfyu404ed 4y ago
>People pay for it because they don't have a choice.
But that money has to come from somewhere. Money is not infinite from the perspective of any individual actor.
If you spend more on gas and 2x4s you have to spend less on something else. Consumer and business credit makes this kind of fuzzy but for the most part it holds.
>If I run a donut shop and can produce 100 donuts a day. According to you, the only way to run the business is to charge as much as possible to still sell ~100 donuts so I can make the most profit. What if by selling them at a reasonable price, everyone is able to afford them and we are still able to pay our workers and ourselves well? Gasp! Another solution presents itself which makes the overall society better off. It doesn't have to be about charging as much as possible, where that extra money will just go to the owner and not the workers anyway.
What are the margins on this hypothetical donuts shop and what do you do when the price of labor goes up 20%, energy goes up 80% eggs goes up 100%?
- eatsyourtacos 4y ago>What are the margins on this hypothetical donuts shop and what do you do when the price of labor goes up 20%, energy goes up 80% eggs goes up 100%? Sure the prices have to increase. But what if they just increased by the amount that it actually cost? And then decreased as those costs go back down? That's the entire discussion here- corporations are increasing by WAY MORE than what the raw inputs cost.. otherwise they would not be making more profits. And then are not proportionality decreasing as their costs go back down.