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Joined 1 year ago
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Cake day: June 18th, 2023

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  • I work for a manufacturing company, and during the demand boom our customers wanted way more product than our facilities are physically capable of producing. I suppose sales could have complexified and ratcheted up our existing rationing process (have to have one at some level when it takes months to produce an order), but raising prices made demand go down so it matched our actual ability to make stuff.

    Given the wild increase in demand beyond the infrastructure capabilities, the only alternative to inflation was rationing, and I do not have enthusiasm for ration lines.




  • Maybe in the short term, but ultimately companies make profit when there are lots of consumers with the resources to buy their product. Squeezing employees makes them unable to consume as much, which slows the economy. Ten thousand people buying a $300 TV makes the company way more profit than ten millionaires buying a $30,000 TV.

    GDP is a bumpy measure that tries to sum up a lot of complexity in one number, but over time (years) it grows faster when the middle class does well.