Gregory's Server@rbreich So you are a pro economist - I'm just an amateur....
But it's always stuck with me that the price of a commodity is set by asking the customers the question "how much do you have (for this purpose)".
Since people were spending less money on things like travel, concerts, eating out, they had more money to spend on diapers.
So obviously, the consultants recommended raising prices, because the market would tolerate it.
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@medley56 @jab01701mid @rbreich competition used to be a hedge against this, but not anymore with no antitrust enforcement (thanks Reagan et al). You can't really go across the street for a better deal when the same corporate holding company owns the mattress store or eyeglass retailer across the street too. And with dozens of brands under each, many people don't really even realize which industries have basically already become cartels. @medley56 @jab01701mid @rbreich You're interpreting that as a rationalization. But the previous poster is just describing what actually happened. People saved money during the pandemic. Corporations--which are always greedy as their natural state--saw the opportunity and raised prices. Due to inelastic demand and supply issues they were successful at raising prices and they're approaching the end game of confiscating all those savings.  @lamont @jab01701mid @rbreich I think we agree on all points in terms of what has occurred. It’s not OK that our economic system works this way. |
@jab01701mid @rbreich Yeah. You just described the process of rationalizing greed. You can call it lots of things but basing prices on the maximum you can force people to pay is greedy, especially when the product is a basic need (in the modern sense of the word need).