Economics is about tradeoffs. It’s sad something so basic needs to be said, but then we live in an era of Joe Biden opining about inflation.
Opining recently about inflation, Biden presumably read “Let me be clear that any corporation that hasn’t brought their prices back down even as inflation has come down; it’s time to stop the price gouging. Give American consumers a break.”
Oh well, even if corporations were actually more powerful than the market and could set prices, gouging would in no way cause inflation. Think tradeoffs. If you’re being gouged for eggs, internet service, or smartphones, you logically have fewer dollars to purchase other goods. A rising consumer price by definition signals a falling price elsewhere.
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