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Everyone but companies can suffer from the effects of inflation, got it.

• tomrod 3y ago
  Basic economics. Consumers pay for products. No matter where you increase costs or taxes, consumers pay the difference.
  • jsbg 3y ago
    Basic economics say that given a certain price, you get a certain demand. And if the price rises, then demand goes down. Consumers don't blindly pay more for things when their prices go up.
    • tomrod 3y ago
      Unrelated point, but true. In basic microeconomics, taxes, market power, and other market distortions create deadweight loss. Again, the higher price is borne by the consumer, regardless where in the supply chain/production process it is injected. Higher costs can flow through without deadweight loss, but again this is all in the static scenario.
  • indigo0086 3y ago
    Businesses fail as profits decrease, one cause of which could be higher cost of inputs. It may lead to those businesses cutting costs elsewhere, or passing it onto the consumer. To shame companies as they find ways to maintain profits when they're the first to be affected by increased cost to inputs is economically illiterate and leads to misguided focus on what the cause of inflation affecting all levels before a consumer gets their smaller chips or soda.