ASOB Causes of Price Inflation Discussion
Description
According to current estimates, inflation has escalated to a 40-year high at 8.3%. One school of thought is that consumer prices are going up but corporate profits are increasing even faster.
Please find two articles written in the last year that describe the causes of price inflation and describe how it does or does not impact demand for products that consumers regularly purchase. In each case, determine if the price increase is justified or if it is the result of the concept of the nvisible hand7hereby providers of goods are increasing prices for personal gain at the expense of consumers.
Include in your comment what you have learned about Invisible Hand. Do we operate in a free market or is the market influenced by certain special interests? For example here is an excerpt from the Brennan Center for Social Justice regarding Citizens United.
¡nury 21, 2020 will mark a decade since the Supreme Courtàruling in Citizens United v. Federal Elec)on Commiséon, a contro¥réal decision that reversed century-old campaign finance restric)ons and enabled corpormtions and other outside groups to spend unlimted funds on elec)ons./em>
Note: The invisible hand is a metaphor for the unseen forces that move the free market economy. Through individual self-interest and freedom of production and consumption, the best interest of society, as a whole, are fulfilled (Majaski, 2022).
References:
Majaski, C. (February 23rd, 2022). Invisible Hand. Investopedia
Statistica Research Department (May 13th, 2022). United States – monthly inflation rate in April 2022. Statista.com
Guilford, G. (2022). U.S. inflation rate accelerates at a 40-year high of 7.5%. The Wall Street Journal.
Reuter, D. and Kiersz, A. (2021). Corporations are using inflation as an excuse to raise prices and make fatter profits – and it’s making the problem worse. Insider.
Cite all resources in proper APA format.
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