4 ms·

So what's the deal with apparel? How come it's actually decreased?

• ipnon 3y ago
  Clothing manufacture is really only bottlenecked by labor. It’s one of the areas where if someone puts up the capital, and the factory is located in a city with low-cost labor, a profit will be turned. It’s a great example of what economists call “comparative advantage.” You can see clearly that the categories with the most inflation are those that can’t be traded: housing, education, medical care are all dependent on American regulatory cartels.
  • culi 3y ago
    Sure, but alternatively you could just as easily say, "you can see clearly that all the categories that are regulated are those with nearly vertical demand curves: housing, education, medical care are all easy to exploit by corporate cartels without regulation"
    • ipnon 3y ago
      My friend, you are clearly the more skilled economist between us.