It doesn’t make sense to me. I used to be all like but then everything increases in price still Yada yada. But recently… why can’t we just lower the prices of petrol artificially. Why can’t we just lower housing prices by law?? Why can’t we erase inflation seeing as it’s completely made up anyway.
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How can you control prices? Why should a homeowner be forced to make less on their home than the market suggests they could? What about a business like car dealerships that lacks inventory, so have to cover their fixed costs (rent, utilities, salaries, health insurance, etc) spread among fewer sales? What about the clothing store that has to pay an international shipping company 5x what they paid last year to get a shipping container of merchandise from China?
Even some of these companies reporting “record earnings” is somewhat artificial… they’re selling older inventory bought at lower prices, but have raised prices to account for the higher cost of new inventory. Say a store has half inventory on shelves bought last year, and half bought this year. They raised their prices 10% when suppliers raised their prices 10%, but the cost of that older inventory sold was based on the old price. But that won’t be the case next quarter, next year.
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