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The price of inputs is going up, but so are interest rates (and expected future interest rates). So where money was cheap, it's going to become more expensive.
by parrhesia 3y ago
The price of inputs is going up, but so are interest rates (and expected future interest rates). So where money was cheap, it's going to become more expensive. I suspect it's understandable a business would want to increase its margins given the expectation of higher rates -- as opposed to the personified "greed" narrative.
- Michelangelo11 3y agoThank you, that's actually the first interpretation that makes total sense to me. If you know that sources of financing are drying up and will stay that way into the foreseeable future, raising prices to make up for it does seem like the most obvious thing to do.
- arrosenberg 3y ago> Thank you, that's actually the first interpretation that makes total sense to me. If you know that sources of financing are drying up and will stay that way into the foreseeable future, raising prices to make up for it does seem like the most obvious thing to do. * When you have a monopoly or cartel and you don't face pricing pressure from competitors. In a competitive market they would have to cut margins, not raise prices. Antitrust, now.
- kaibee 3y ago> The price of inputs is going up Except it didn't. That's like, the first thing in the article.
- mola 3y agoBecause businesses are not owned by ppl? And a small amount of those? It's much more reasonable to personify the decisions made by these ppl than to assume that some anonymous law of nature did it