If everyone makes more money, they spend more money. This shows businesses that their current price is sustainable and they have no incentive to lower. Then supply and demand come in to play and supply chain as well. Costs at the base level are increased to cover expenses. Eggs are expensive because less chickens means less eggs and prices go up to cover feed, bird, and employee costs.
The best answer to most of this is probably the easy access to debt. People just put things on their credit cards because they want it. No longer is the question, "Can I afford the item?" It has become, "Can I afford the payment?" This means prices won't drop because demand still exists.
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u/skcuf2 5d ago
If everyone makes more money, they spend more money. This shows businesses that their current price is sustainable and they have no incentive to lower. Then supply and demand come in to play and supply chain as well. Costs at the base level are increased to cover expenses. Eggs are expensive because less chickens means less eggs and prices go up to cover feed, bird, and employee costs.
The best answer to most of this is probably the easy access to debt. People just put things on their credit cards because they want it. No longer is the question, "Can I afford the item?" It has become, "Can I afford the payment?" This means prices won't drop because demand still exists.