I heard a potential MAGA talk about inflation the other day.

[Baitball Blogger]

He was talking about how he has had to increase the price of his widgets. i think the reporter asked if it was a temporary increase to offset the Covid caused supply change problems. And the potential MAGA says, no, once those prices go up I have never seen them come down.

And I'm thinking, as long as you're living in a capitalist society, there will be price fluctuations as long as there is competition. Not sure why a MAGA would not consider that.

[berni_mccoy]

1. He's not wrong. There is no such thing as temporary inflation

There are temporary changes in the rate of inflation but not in the values of goods. This is because of the nature of the system and the desire of those who participate in it to keep it moving up and to the right. I know, it’s not a sustainable system but that is the way it is. It’s why we have periodic contractions in the market to correct overvaluation of companies but that is rarely reflected back on the goods that the companies sell.

[Baitball Blogger]

2. But, once the factors change that was the cause of the increae, eventually another company

will lower their prices to get a better chunk of the market. That's free market capitalism.

[berni_mccoy]

5. We don't live in a free market system.

And yes competition can lower prices but in general that hasn’t been the case with recent consolidations. That’s what happens when companies have more money than they can spend.

[yagotme]

3. What happens, after deflation hits,

a competitive widget maker opens up, drives maker "A" out of business with his lower price, and becomes the current widget maker.

[berni_mccoy]

6. See my response above

[Bettie]

7. That no longer happens in our society

the new widget maker is bought by the first widget maker and the price goes up higher.

Fact is, corporations are making enormous profits and raising prices because the guys at the top want more money.

It is mostly detached from supply and demand at this point.

[I_UndergroundPanther]

4. Capitalism

Fails the non-obscenely wealthy again.

Capitalism has instability built into it.

Capitalists make money when the poor suffer.

[MichMan]

8. The widget customers will buy them from China instead

Last edited Thu Nov 4, 2021, 04:35 PM - Edit history (1)

US widget manufacturer will ultimately have to close up his plant or move overseas himself.

What is a potential MAGA ?