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Economic question: won't this just eventually result in a rise in prices to reflect the fact that everyone has more money? I guess imported goods will remain a
by habosa 13y ago
Economic question: won't this just eventually result in a rise in prices to reflect the fact that everyone has more money? I guess imported goods will remain about the same price, but things produced locally would almost definitely go up in price. If I knew all of my customers had $2500/month more, I'd raise prices.
- marcosdumay 13y agoAnd I'd undercut you by selling at the older price, increasing my total profits... Except that I'd lose market too, because somebody would use the newly achieved scale to save costs and undercut me too. Distributing money does not make capitalism go away.