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Basic macroeconomics: Inflation decreases, retailers begin lower prices to increase sales. There's a delay between all of this. This process happens over 1-2 y
by exabrial 3y ago
Basic macroeconomics:
Inflation decreases, retailers begin lower prices to increase sales. There's a delay between all of this. This process happens over 1-2 years, much slower than prices going up.
This does not happen in a market with monopolies however, which is why it is vital to lower the barrier of entry into markets (decreasing stupid regulations that get "exceptions" in the real world), or use FTC or other state agencies to break up suppliers.
Or event bet, reduce our tax code / and or change it so that vertical integration stops being a thing.
Oh, and it'd help if the federal reserve stopped wholesale printing worthless money to try to keep up with absolutely reckless spending by the federal government.
- SantalBlush 3y agoThat's not basic macroeconomics, it's wrong. Disinflation is not the same thing as deflation. PSA: whenever someone calls a concept "basic economics", don't just take their word for it.