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> In economics, inflation is an increase in the general price level of goods and services in an economy. ~Wikipedia If profit seeking is increasing the general
by falcolas 3y ago
> In economics, inflation is an increase in the general price level of goods and services in an economy. ~Wikipedia
If profit seeking is increasing the general price level of goods (via a “coincidentally” coordinated raising of prices), how is it not causing inflation?
- lukas099 3y agoThe companies were always seeking maximum profit; obviously something changed since before the inflation hit.
- falcolas 3y agoThey discovered that they could get even more profit than they believed possible before; specifically that customers could bear even higher prices, at least in the short term. This was discovered by pandemic price increases caused by increased costs. The new plateaus have just never dropped, even as their costs have dropped.
- lukas099 3y ago> This was discovered by pandemic price increases caused by increased costs. So to be clear, you agree with the article that companies increased prices in response to inflation, and therefore couldn't have been the preliminary cause of it.
- falcolas 3y agoNo, they raised prices because they found an opportunity for more profit that they had missed before. No other forces than greed were required.
- lukas099 3y agoYou said that pandemic price increases were caused by increased costs.
- falcolas 3y agoThat only exposed their mistaken assumptions. Education doesn’t cause anything; a person’s (or collective of people’s) choices caused the excessive profit seeking. I say excessive because it’s not sustainable. The median wages can’t support these profit margins indefinitely.