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To: ProtectOurFreedom

Prices go up and prices go down. Demand fluctuates.

But people have only so much to spend.

If a bunch of people suddenly decide they want more of X, demand for X rises, and the price of X goes up.

But simultaneously people buy less of Y, demand for Y decreases, and the price of Y goes down.

That’s the way markets work, except...

If the price of everything goes up, it’s not demand that’s driving it, it’s money supply.


25 posted on 03/08/2024 5:56:32 PM PST by jdege
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To: jdege

Exactly right. Inflation is the GENERAL movement of all prices, not supply & demand fluctuations of specific products or services. They are different.


29 posted on 03/08/2024 6:57:56 PM PST by ProtectOurFreedom (“Occupy your mind with good thoughts or your enemy will fill them with bad ones.” ~ Thomas More)
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