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This Is Why Prices Only Go Up
Behind every price tag lies a struggle for power and profit. From the boardrooms of mega-corporations to the bargaining tables of labor, this discussion exposes how prices are set, why they rarely drop, and how inflation becomes the default state of a modern capitalist economy.
Full episode: https://youtu.be/E450WRL0MJU
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what is the real cause of inflation? We go beyond simple explanations to explore the complex tug of war inflation creates between different interest groups. We compare the neoclassical vs post keynesian inflation models, revealing why do prices always go up in a capitalist economy. We explain that corporations have a huge role in this, and that why do corporations raise prices is not just about supply and demand. The discussion introduces the MMT theory of inflation and contrasts the idea of prices being administered top down versus a continuous auction. We offer a critique of the auction theory of prices and explain how prices function as a mechanism for surplus accumulation. We also explore why is deflation bad for the economy by looking at the impact on wages and business. The video provides real-world corporate price gouging examples and even uses a thought experiment inspired by the barber paradox inflation to illustrate a point. We also cover why does a company need loans, and how a healthy profit margin and business expansion are interconnected. We touch upon the unique business strategy of MicroStrategy Bitcoin strategy and an interesting case study involving IBM AI support. Finally, we provide an inflation explained simply segment for a clear understanding of the baseline for price increases and whether there really is a natural inflation rate.
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