{"id":250702,"date":"2023-07-04T20:35:52","date_gmt":"2023-07-04T15:05:52","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=250702"},"modified":"2023-08-31T14:48:55","modified_gmt":"2023-08-31T09:18:55","slug":"greedflation-and-its-counter-arguments-how-consumers-ultimately-decide-prices","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/greedflation-and-its-counter-arguments-how-consumers-ultimately-decide-prices\/","title":{"rendered":"Greedflation and its counter arguments: how consumers ultimately decide prices"},"content":{"rendered":"\n<p><strong>Source:<\/strong> This article has been framed based on India Express article \u201c<strong>Clearing the water<\/strong>\u201d, published on 4<sup>th<\/sup> July.<\/p>\n<p><strong>Syllabus Topic: GS Paper 3 \u2013 Indian Economy \u2013 Pricing and Inflation<\/strong><\/p>\n<p><strong>News:<\/strong> The article discusses the concept of &#8220;greedflation,&#8221; which refers to price inflation caused by corporate greed for high profits.<\/p>\n<p>The US is facing the record high inflation, since the pandemic. It has given birth to the theory of greedflation.<\/p>\n<h2><strong>What are the arguments of theorists favoring greedflation theory?<\/strong><\/h2>\n<p>Proponents of the greedflation theory argue that corporate profit margins have risen significantly since the pandemic, contributing to high inflation.<\/p>\n<p>U.S. corporations have allegedly increased the prices of their goods by more than what was necessary to compensate for higher input costs caused by supply-chain bottlenecks.<\/p>\n<p>As per this theory, market power of large corporations should be controlled and price hikes should be banned to prevent \u201cprofiteering\u201d.<\/p>\n<h2><strong>What are the arguments of theorists opposing greedflation theory?<\/strong><\/h2>\n<p>Critics of the greedflation theory argue that businesses cannot arbitrarily set prices. Prices are set based on what consumers are willing to pay for products.<\/p>\n<p>Businesses cannot force consumers to pay a certain price for their goods.<\/p>\n<p>The best explanation behind U. S\u2019s inflation is U.S. Federal Reserve\u2019s expansionary monetary policy during the pandemic. Which has increased the money supply, leading to expansion of purchasing power of users.<\/p>\n<p>It might also be a \u201ccost-push\u201d inflation which is due to inflation to a rise in input costs. <strong>For example,<\/strong> in the past, a rise in the wages demanded by workers has been blamed for the rise in the prices of goods and services.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Source: This article has been framed based on India Express article \u201cClearing the water\u201d, published on 4th July. Syllabus Topic: GS Paper 3 \u2013 Indian Economy \u2013 Pricing and Inflation News: The article discusses the concept of &#8220;greedflation,&#8221; which refers to price inflation caused by corporate greed for high profits. The US is facing the&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/greedflation-and-its-counter-arguments-how-consumers-ultimately-decide-prices\/\">Continue reading <span class=\"screen-reader-text\">Greedflation and its counter arguments: how consumers ultimately decide prices<\/span><\/a><\/p>\n","protected":false},"author":10320,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[216,8184],"class_list":["post-250702","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-gs-paper-3","tag-indian-economy","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/250702","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10320"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=250702"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/250702\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=250702"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=250702"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=250702"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}