It seems like everything is always going up in price. Is that because of corporate monopolies or something? Do costs of living get higher as a society becomes more industrialized/advanced?
In: 3
Real quick
– Monopoly power might explain *high* prices, it does not explain *increasing* prices. Unless you assume monopoly power has gotten worse over time (there are indications this is the case).
– Increasing monopsony power of low-wage enmployers. Yes, in part due to trade with China. (this might be less of an issue now, the worst is over)..
– Shifts in what is perceived as “essential” (everyone wants a $1,000 iPhone + monthly fees, etc.) increasing faster than wages.
– Increase of importance of the “low-productivity gain sectors” (healthcare, housing, education) in people’s essential needs, which have faster increasing costs (“cost disease”).
– Supply chain issues. Including energy and food price issues relating to the war in Ukraine.
– Increased environmental standards (a huge issue if you ask me).
– recent loose monetary and fiscal policies (wages should catch up, though. Just Ask UAW 🙂 ).
Feel free to add 🙂
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