Now even the Bank of England admits greedflation is a thing; Work by Threadneedle Street’s own analysts suggest that firms are intending to keep prices high, despite falling costs
by Robotoro23
Now even the Bank of England admits greedflation is a thing; Work by Threadneedle Street’s own analysts suggest that firms are intending to keep prices high, despite falling costs
by Robotoro23
6 comments
Quick, everyone, act surprised.
Grocery prices are something where this is utterly unacceptable, but for discretionary purchases how is this a threat? If something is overpriced just *don’t buy it*. The market sets the price, and if the market is perfectly willing to pay for these new prices at full velocity, then so it will be.
Food is obviously not discretionary. Nor are things like electricity, Internet access, water, etc. But let’s see some actual discretion among buyers if companies want to try this. People can complain all day, but until they change their consumption behaviors this won’t change.
There has always been price gouging. Ramsey pricing, which would explain the markups, uses S and D, so this does not imply that S and D are incorrect.
It simply means that there was a significant shock to the global economy that was widespread, prolonged, and not concentrated in any particular industry.
I’m curious: What’s going to hit first government regulation (doubt with torie government) or one business undercuts and takes advantage. Or the most likely scenario prices stay high until profits start to decline as a result of a recession from people starting to literally go broke.
Unrelted, but I’ve got money on the crash of Uber just eat and all takeaways as they have inflated themselves to a stupidity level of high and its insanity that people are still ordering. Especially as McDonald’s is now charging 10p for a paper bag.
Is everyone scared to talk about wage price spirals?
Modern capitalism is built on one thing and one thing only: ever increasing profits
If at ANY point you stop growing or worse, decline just a teeeeeny bit… you lost. You failed and now all the roaches that put their faith in your ability to sustain their ever-increasing numbers will begin to panic and scurry away, pulling their investments out.
Capitalist society as it stands today isn’t about sustainability. People just want to get rich quick and if the world burns in the process then that’s just the cost of business.
TL:DR, corporations set these new prices as the standard and they will not tolerate a drop in profit. Not without shareholders and investors soiling their britches and dooming businesses to die as they pull their investments out.
Either that or the government will have to bail them out… with taxpayer money… so YOU will be paying the price one way or another.