| Chrkeller said: can't raise prices, they will reduce the amount of material being offered (shrinkflation). TBH, I am in board meetings for work. I can assure you they are getting their money one way or another. Hell it could involve having 5 people do the work of 10 and reducing operating costs. Ain't no board taking a huge hit on their money, it will 100% be passed on, full stop. Going robotics, using AI, outsourcing, etc, etc. The board is getting their money. |
Even if that were the case (which economic literature clearly shows is not always true), you need to understand that the economy is not a zero-sum game. Increases in the prices of services and groceries (or shrinkflation) may sometimes be unavoidable, yet they can still result in a net positive effect on the economy if demand for those products rises and overall consumption expands
Remember: many people with little money is better for the economy than a few people with huge amounts of money. Little money in the hands of many means direct spending i.e., direct GDP growth and increased demand in the "real economy". Huge money concentrated in the hands of a few, on the other hand, often translates into financial speculation, banking reserves, real estate bubbles, tech bubbles, and capital leaving the country (especially in developing nations)
Regardless, without taxes to ensure a minimum distribution of income and the subsidization of services and goods, many people would simply starve and die: Something that should be avoided, even at the cost of some degree of GDP growth
