this post was submitted on 16 Oct 2023
1168 points (97.3% liked)

World News

39096 readers
2513 users here now

A community for discussing events around the World

Rules:

Similarly, if you see posts along these lines, do not engage. Report them, block them, and live a happier life than they do. We see too many slapfights that boil down to "Mom! He's bugging me!" and "I'm not touching you!" Going forward, slapfights will result in removed comments and temp bans to cool off.

We ask that the users report any comment or post that violate the rules, to use critical thinking when reading, posting or commenting. Users that post off-topic spam, advocate violence, have multiple comments or posts removed, weaponize reports or violate the code of conduct will be banned.

All posts and comments will be reviewed on a case-by-case basis. This means that some content that violates the rules may be allowed, while other content that does not violate the rules may be removed. The moderators retain the right to remove any content and ban users.


Lemmy World Partners

News [email protected]

Politics [email protected]

World Politics [email protected]


Recommendations

For Firefox users, there is media bias / propaganda / fact check plugin.

https://addons.mozilla.org/en-US/firefox/addon/media-bias-fact-check/

founded 1 year ago
MODERATORS
you are viewing a single comment's thread
view the rest of the comments
[–] [email protected] 7 points 1 year ago (3 children)

Because of competition. Let's say Company A makes widgets and, owing to people having more money, tries to raise prices. Along comes Company B, which also makes widgets, who recognizes that they can out-compete Company A on price. So, they either don't raise their prices as much or they keep them the same. Company A is now stuck either accepting lower sales, or lowering prices to compete. Once Company A reduces prices (because they want to survive), they put Company B in the same situation until prices stabilize at some smaller profit margin.
So basically, the exact same supply and demand curves which keep prices stable now. It's not like businesses aren't already doing everything they can to separate you from your money.

In the end, it such a system would likely lead to some inflation. With more money in the economy, there is likely to be more demand for goods. If supply doesn't expand to match the new demand, prices will go up. At the same time, increased consumer spending is often a good thing, so long as it doesn't expand so fast that it creates shortages. It may also push up wages for unskilled workers, and those positions may now be harder to fill, commanding higher wages. It may also drive even more automation of unskilled jobs, which isn't necessarily a bad thing. Those jobs are almost certainly headed for automation anyways; so, it's better for society if we get out in front of that trend and avoid having a large pool of young, unemployed and disgruntled people running amok in society. Much better to have higher taxes which are used to keep the unemployed youth at least mostly gruntled instead. But, that's bad for rich, greedy assholes who would rather walk a tight-rope of just enough bread and circuses and full on civil unrest.

[–] [email protected] 11 points 1 year ago (1 children)

Because of competition

We don’t do that well in Canada

[–] [email protected] 2 points 1 year ago

Or in the USA. Remember Jimmy Carter claiming the USA is just a collection of oligopolies? Ya.

[–] [email protected] 5 points 1 year ago (1 children)

Or company A buys company B and raises prices.

[–] [email protected] 3 points 1 year ago (1 children)

Markets need to be regulated in order to function properly

[–] [email protected] 4 points 1 year ago (1 children)

Oh, so it's definitely not going to work here

[–] [email protected] 3 points 1 year ago

What do you mean? Our internet and cell phone plans are definitely competitive!

##/s##

[–] [email protected] 1 points 1 year ago

Ah, the famous invisible hand of the market. Doesn't work now, I'm doubtful anything will change with basic income.