Re:If You Think Free Money Kills Work Ethic, Your Definition...
by DougN7 on Wednesday May 04, 2016 @05:35PM
(#11632063)
> the money is used for different priorities
More money chasing the same goods increases prices.
Imagine each family has $15K more than they do now. Some would upgrade their living conditions, causing more competition in the strata they are moving up to, which would increase prices. Some would buy cars they couldn't previously, causing more demand for cars, and increasing prices. Some would go for luxuries they couldn't previously, causing more demand.
There is no way around supply and demand.
The only way prices don't increase is if demand doesn't increase. If some people create more demand, others have to have less demand.
More money chasing the same goods increases prices.
Imagine each family has $15K more than they do now. Some would upgrade their living conditions, causing more competition in the strata they are moving up to, which would increase prices. Some would buy cars they couldn't previously, causing more demand for cars, and increasing prices. Some would go for luxuries they couldn't previously, causing more demand.
There is no way around supply and demand.
The only way prices don't increase is if demand doesn't increase. If some people create more demand, others have to have less demand.