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This doesn't really matter for inflation. Let's say there is a "cheese monopoly" and they increase the price of cheese 10x. But everyone must have their cheese,
by zeroonetwothree 3y ago
This doesn't really matter for inflation. Let's say there is a "cheese monopoly" and they increase the price of cheese 10x. But everyone must have their cheese, so they keep buying it. Now they have less $ to buy other things, so they will either substitute with cheaper goods or the producers will have to lower the price to maintain sales. Thus you see that one seller or industry raising prices does not inherently cause inflation.
- bugglebeetle 3y agoThat’s a wonderful fairy tale from an Econ 101 textbook, but the reality is instead that the state will intervene to lower input costs for the cheese monopoly by doing things like loosening child labor laws and imposing work requirements for Medicaid.
- vocatus_gate 3y agoWhat the hell are you talking about
- Drakim 3y agoHe is saying that those profitable powerful industries will lobby the government to help increase it's profit though various means. Not enough labor? Instead of paying more to attract talent, lobby the government to legalize child labor.