Re:U.S. annual inflation rate drops to 8.5%
by roenxi on Thursday August 11, 2022 @06:33AM
(#32423755)
> Or am I missing some greater economic concept?
It is a practical concept. If you think greed is a variable, then you will have to explain why McDonalds suddenly got greedy in 2022 and from 1940-2021 they've been charitably keeping prices low. Any why they aren't raising prices right now to the even higher numbers that we'll probably be seeing in a few years.
They just sell for the price that they think brings in the highest profit. That is the algorithm. Their motivations aren't a factor and the algorithm is has always been the same. They could be greedy or they could be not greedy and that doesn't change the situation.
> It seems unlikely that zero companies are riding the wave of inflation acceptance in the population.
It is possible that there are zero of such companies. The populace doesn't get to set prices - otherwise prices would be cost to manufacturer for everything. Since companies make a profit, it is clear that consumers "acceptance" doesn't influence the price.
People aren't accepting these price rises. They're saying all sorts of things about the companies doing them. Doesn't change the fact that the price has changed.
If greed or the acceptance of consumers were important then the situation would look different. Neither matter much.
It is a practical concept. If you think greed is a variable, then you will have to explain why McDonalds suddenly got greedy in 2022 and from 1940-2021 they've been charitably keeping prices low. Any why they aren't raising prices right now to the even higher numbers that we'll probably be seeing in a few years.
They just sell for the price that they think brings in the highest profit. That is the algorithm. Their motivations aren't a factor and the algorithm is has always been the same. They could be greedy or they could be not greedy and that doesn't change the situation.
> It seems unlikely that zero companies are riding the wave of inflation acceptance in the population.
It is possible that there are zero of such companies. The populace doesn't get to set prices - otherwise prices would be cost to manufacturer for everything. Since companies make a profit, it is clear that consumers "acceptance" doesn't influence the price.
People aren't accepting these price rises. They're saying all sorts of things about the companies doing them. Doesn't change the fact that the price has changed.
If greed or the acceptance of consumers were important then the situation would look different. Neither matter much.