Let me try to explain what I mean. Most of us know the basics if economic growth (or lack of), rising prices, the risk of inflation and so on.
Why do we need all this? Note, I don't mean why do we have growth, I mean why do we need it? Let me take the example of a loaf of bread. The wholesaler (to the bakery) needs to charge £x to make a profit. The bakery needs to charge £y to the customer to make a profit. The customer needs to earn £z (in terms of what they spend on bread) to ensure they're not out of pocket. So, at a given point in time, all parts of the chain are making profit and the customer can purchase within their means.
Why then, at some point, does the wholesaler need to increase prices, thus meaning the bakery has to do likewise and the customer ends up out of pocket in terms of their bread spend?
I'm maybe not explaining it very well, and I appreciate their are many layers to all this. However my underlying point is it often seems to be growth and price increases (coupled to wages not keeping up) that seems to create many of the issues the masses then experience. Why therefore, can prices throughout the supply chains of the world not remain constant, with everyone making a degree of profit and the customer with wages to live at least semi-comfortably.
I suspect world economics, like other things we've discussed on here, is intentionally overly complex to ensure the rich remain rich and the poor remain poor, with those of us in the middle struggling to varying degrees.
Why do we need all this? Note, I don't mean why do we have growth, I mean why do we need it? Let me take the example of a loaf of bread. The wholesaler (to the bakery) needs to charge £x to make a profit. The bakery needs to charge £y to the customer to make a profit. The customer needs to earn £z (in terms of what they spend on bread) to ensure they're not out of pocket. So, at a given point in time, all parts of the chain are making profit and the customer can purchase within their means.
Why then, at some point, does the wholesaler need to increase prices, thus meaning the bakery has to do likewise and the customer ends up out of pocket in terms of their bread spend?
I'm maybe not explaining it very well, and I appreciate their are many layers to all this. However my underlying point is it often seems to be growth and price increases (coupled to wages not keeping up) that seems to create many of the issues the masses then experience. Why therefore, can prices throughout the supply chains of the world not remain constant, with everyone making a degree of profit and the customer with wages to live at least semi-comfortably.
I suspect world economics, like other things we've discussed on here, is intentionally overly complex to ensure the rich remain rich and the poor remain poor, with those of us in the middle struggling to varying degrees.