I understand that demand-pull type of inflation is a result of companies raising prices when consumers have more money? But why would they raise their prices and not just enjoy the fact that purchasing power of the consumers has increased? Is that a result of some sort of inherent greed that you see an opportunity to get even more money by raising prices? Why not just enjoy the fact that many people can afford your product?
In: Economics
Flip it around:
You work for a company that is seeing profits increase in a good economy and gives raises to its employees to ensure they retain them. Is it greedy to accept more money for the same work or is it just good sense to take the money? You’re selling your time and labor, and they’re willing to pay more for the same product.
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