Time and time again it’s the same bullshit argument. I’ve grown tired of it. The price of goods and services has decoupled from the cost for a while now, and prices are rising at a staggering rate without salary increases.
>The price of goods and services has decoupled from the cost for a while now, and prices are rising at a staggering rate without salary increases.
Almost as if there's multiple supply chain disruptions (from pandemic to ukraine) causing goods to be more scarce, causing consumers to bid up the prices for the goods that remain.
No. This has been the stated reason, but profits are at a record level. Inflation may be the reason for an initial rising of prices, but they do not return to old levels when costs go back down.
> the US COVID-19 inflation is predominantly a sellers’ inflation that derives from microeconomic origins, namely the ability of firms with market power to hike prices.
Average business loans in the euro area are around 4% as of December 2022, though governments are still raising rates. As long as these unreasonable profit margins are higher, it would make sense to get one, and I'm not sure anything under 15% profit (much higher than current govt bond rates) could be considered unreasonable. I started manufacturing candles during the pandemic with only a few thousand dollars up front and those things can get 50% margins which is insane.
I understand that monopolies and barriers to entry can exist. The government should be much more focused on eliminating those rather than central planning through things like pensions that are shockingly complex and have a penchant for unintended consequences. I believe in a social safety net but markets with a little guidance can do most of the government's work for it and avoid be better at avoiding a ton of pitfalls like runaway inflation.
In case that's not sarcasm, I'm in the lumber business. Lumber prices have collapsed in the last six months with massive losses and curtailments throughout the industry. I assure you there is no less greed today than there was a year ago when the market was at the top -- and no more greed then than now. We always at all times charge precisely as much as the market will bear. We do that by always selling to the highest bidder, and I have no idea how else we'd do it.
yeah most of our goods and food are now imported so it is not even local salaries that will increase the price of goods. container shipping price however…
