4 ms·
> guess you could try to have some kind of price controls to limit corporate profits. That just creates shortages, and then you still have inflation, in fact
by kneebonian 4y ago
> guess you could try to have some kind of price controls to limit corporate profits.
That just creates shortages, and then you still have inflation, in fact you make it worse, because people still want the stuff, but then getting that stuff just involves off the book transactions, insider deals, and other nefarious and illicit actions to get the stuff.
I mean look at the USSR, being rich wasn't important, there were no rich. Yet there was still an exploitative parasitic upper class that dined on caviar and fine wine everyday while most of the population was waiting for hours in the cold to get bread. The only difference was, now it was based on who you knew and being connected instead of the amount of money you had.
- jhallenworld 4y agoAnother way: collective purchasing- the high quantity gives them more negotiating power. I think that was the original idea of buyer's clubs. A good example of this is my parent's internet fee. It is way less than mine since their gated community is buying it for everyone in the community.
- teeray 4y agoYou can analyze it considering “time required to acquire a good” as a currency. A shortage is inflation in the time dimension to compensate for lack of inflation in the “dollars & cents” dimension.