Hello Dale,
think that people will
buy just as much food and other products.
People buy as much food as they can, as everybody has to eat.
When prices go up, people shift their buying. For example, more pasta
and less steak.
Most people do not have unlimited income, and can only buy as much
as they are able to with what they have. Food is something that is a
must have item, as everybody has to eat.
Economics 101 shows that when prices go up, people buy less.
Mostly true -- if they have a choice.
Food is not a choice, but a must have item.
So is medicine, and other needs.
Sometimes folks have to sacrifice one need in order to obtain
the other need, even though both are needed for survival.
When the price of utilities goes up, there is not much they can do.
It is a matter of priorities. Food trumps everything. But what happens
when one needs a medicine for survival, and must sacrifice other needs
in order to obtain that particular need? What does one resort to when
out of income to obtain what one needs in order to survive?
It can get very cold in the wintertime in some parts of this country.
Not having enough income to pay for utilities means one has to find a
way to come up with a way to buy it. Drugs and prostitution come to
mind. So who are the real criminals?
When they have to commute 20 miles a day, they still have to buy the same amount of gas -- and thus have less money for other things.
Only for those on fixed income - such as folks on social security,
welfare, homeless, etc. For those with unlimited income the cost of
gas is not a factor.
Getting more complicated, in a market where necessities go up RL>for a
while, people put off buying large, long term purchases (like RL>cars and houses).
True.
Wages never keep up with inflation. And those on fixed incomes are
even worse off. Even those who are working are not able to save any
real income, as most are forced to spend whatever they have on basic
needs for themeselves and their families.
Only those who save money due to having too much money to count are
griping about inflation, as all they want is for their investments to
increase - without spending any of their beloved "savings".
If you want to make money you have to spend money. Preferably other
peoples money. That is the way it works, and always has worked.
Nobody wants to spend their own money, as that is a losers game.
Take it from The Donald, the most famous grifter in the USA.
For Life,
Lee
--
Everybody Loves Our Buns
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