this post was submitted on 05 Nov 2023
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It's not your imagination: Companies are more willing to raise their prices now β€” and it's because we let them (www.cbc.ca)
submitted 10 months ago by sik0fewl@kbin.social to c/canada@lemmy.ca
60 comments fedilink hide all child comments
 

Supply chains, worker wages and the price of energy has been blamed for the current bout of high inflation. But central bankers around the world are starting to clue in to something consumers have been aware of for a while β€” corporations just aren't afraid to raise their prices anymore.

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[–] Neato@kbin.social 4 points 10 months ago (4 children)

There's a solution: legally mandating price ceilings. Good luck getting through Congress but the solution to market coordination can't be market forces.

[–] Prezhotnuts@lemmy.ca 14 points 10 months ago (2 children)

We don't have a congress in Canada, so it would be impossible.

[–] some_guy@lemmy.world 5 points 10 months ago (1 children)

Oh he was talking about America on an article about Canada in a Canadian community. Because he doesn’t read articles, just posts uninformed hot takes that he expects everyone to agree with.

[–] Asafum@feddit.nl 1 points 10 months ago

I did the same thing, but it's because we're all seeing the same things as far as cost increases and governments sitting on their hands.

[–] AngryCommieKender@lemmy.world 2 points 10 months ago (1 children)

Couldn't your parliament enact such price caps?

[–] Prezhotnuts@lemmy.ca 3 points 10 months ago

Yes they absolutely could.

[–] frostbiker@lemmy.ca 9 points 10 months ago* (last edited 10 months ago) (1 children)

There’s a solution: legally mandating price ceilings

This populist idea has been done many times and it always leads to the same outcome: businesses stop stocking unprofitable items.

Learn from history, people.

[–] Neato@kbin.social -3 points 10 months ago* (last edited 10 months ago)

The ceiling would have to still be profitable. And if this is a thing people need but can't afford while profitable, the government should provide it.

People need to learn from history and realize corporations exist to serve the people and at the people's pleasure. You have to apply for a corporation and a we've seen with Trump, can be dissolved. Which should really happen a lot more often.

[–] veni_vedi_veni@lemmy.world 1 points 10 months ago (1 children)

That leads to unexpected consequences of them. Shrinkflation, strong-arming suppliers even more, etc. And then adminstrating/enforcing against infractions just becomes prohibitive to maintain.

[–] Neato@kbin.social -1 points 10 months ago

Maybe. But we already do this for a lot of things. Drugs is the most well-known. If we know what the production cost is (and the government can just request that info), we can set the price ceiling to ensure the profit floor still exists. This is pretty common in government contracts: % profit.