Yep, a huge portion of this recent ‘inflation’ is not cost increases or actual inflation… just basically the wealthy class turning the screws on everyone else because they can.
Don’t worry, my Econ 101 class states that surely a competitor will come in and operate at a lower cost to recoup that cost for the customers!
Wait… what do you mean the competitors are all increasing prices by the same amount knowing demand for diapers is inelastic and the Nash equilibrium is for them to all match price increases so that they all make more money together?
Surely a new entrant will help!
Wait… what do you mean nobody will invest in a new competitor because the market is “saturated” and even if they did the big brands would just decrease prices in the areas they operate until they run out of cash and fold?
Surely a regulator will help!
Wait… what do you mean the regulators feel price increases are due to “too much demand” for products and are turning the screws on consumers?
They literally lock up the baby formula in a cage at my local grocery stores now. You know, so criminal scum with starving babies don’t pillage them.
If that doesn’t signal imminent collapse I don’t know what does.
I think corporations learned some very dangerous lessons from the pandemic.
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The demand for essential goods is inelastic. They can charge whatever and people still have to but things, especially food, household products, and a place to live.
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They can understaff and underpay employees, and people will choose to fault people for laziness rather than the deliberate corporate choices that lead to the situation.
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Corporations have built such a large market share so as to have created giant barriers to entry that there is zero competition from new businesses.
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Even larger competitor corporations are happy to wink and nod as you both raise prices, cut staff, and give paltry raises because it just means you both make more money, and so long as you don’t say it out loud, it isn’t collusion.
They already knew these things, they just needed an excuse to not cause too much of an uproar. Egg prices went up by way too much too quickly that even the government, who rarely actually does anything about this sort of thing, started an investigation. Magically the prices dropped by a lot, but unfortunately still higher than it used to be.
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Someone should have Robert Reich be their vice president. He could come out every second day and rip into some fucking companies for the shit they do to keep dragging the whole world down.
