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Posted: 5/14/2004 11:17:00 AM EDT
Why is an improvement in the economy a justification for businesses to jack up prices on consumers. I would think if they left prices alone people would be more prone to spend more... I don't get it.
Link Posted: 5/14/2004 11:22:50 AM EDT

Quoted:
Why is an improvement in the economy a justification for businesses to jack up prices on consumers. I would think if they left prices alone people would be more prone to spend more... I don't get it.



It has nothing to do with justification.  The demand for employment and raw materials goes up which in turn increases the cost of production for companies.  What do you expect them to do... sell product at a loss just because you don't think raising prices is a nice thing to do?
Link Posted: 5/14/2004 11:25:46 AM EDT
A little inflation is generally a good thing.  Do you want a higher salary next year?  The other options are deflation, or heavy inflation.  Deflation sucks, because nobody will want to employ you, or make investments.  Heavy inflation saps disposable income, and will damage our 'luxury' economy.

Pick your poison.  The only alternative is Communisim with its managed economy.
Link Posted: 5/14/2004 11:40:10 AM EDT
Let the free market rule.
Link Posted: 5/14/2004 11:40:13 AM EDT

Economic Recovery = Inflation?


Of course, that's the way that the economy works.
Link Posted: 5/14/2004 11:51:02 AM EDT

The demand for employment and raw materials goes up which in turn increases the cost of production for companies.


Alrighty then... thanks for the economy lesson. Never took the course.
Link Posted: 5/14/2004 8:43:18 PM EDT
Lots of things are coming together for inflation right now.  Weak dollar, Fed flooding economy with cash, higher crop subsidies, higher oil prices, suring demand worldwide for raw materials, monopsony behavior by China, etc.

GunLvr
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