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?
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Inflation is controlled by the government. If a government doesn’t want inflation, then, there won’t be an inflation.
Governments do inflation as a semi-hidden tax.
They raise the inflation to make sure working people lives below a standard, can’t make savings and be richer. At the same time, inflation reduces the debt of corporations and companies.
Some economists will tell you as if inflation is something that is naturally occurring. This is a lie. There is no “natural inflation”. Inflation is a decision that governments make. A decision at the expense of working people and in favor of rich people.
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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