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Showing posts with label Demand and supply. Show all posts
Showing posts with label Demand and supply. Show all posts

Saturday, September 2, 2023

Eric Crampton: Those who blame rising costs on "Greedflation" haven't got a cluedo


It has to be the silliest game of Cluedo going. Who caused the cost of living to blow out?

This week, the NZ Council of Trade Unions, FIRST Union, and ActionStation (a left-wing version of the NZ Taxpayers Union) released a report claiming that rising profits drive inflation.

It follows on from a BusinessNZ study earlier this year claiming that input price increases, rather than company margins, have driven most of the increase in prices.

But that’s not how this works. That’s not how any of this works.