this post was submitted on 01 Apr 2024
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The law of supply and demand is not real. When wealthy money addicts rip you off they pretend its a force of nature ripping you off. Behind every money transaction there is a human being with an address who made a choice.
the law of supply and demand is only true in true capitalism. True capitalism doesn't exist because it doesn't work.
Um, so you don't think that when a commodity becomes more scarce that the demand for it increases as a consequence?
Scarecety-induced demand is not law of supply and demand
There's also a thing called price gouging where companies fuck over the public because they know they can. And then they keep the prices artificially high even after supply increases two, three, four fold over demand. Because they know they can.
Not that I am suggesting corporations are corrupt and would let people starve just to make a profit. Heaven forfend.
To be clear, price gouging is an example of supply and demand
Keeping prices high is an example of price fixing, not supply and demand. It requires companies colluding with each other because, otherwise, one company would just lower their prices to get more business and make more money
Raising your prices by a reasonable amount to meet extra costs is supply and demand.
Raising your prices by three, four, five or six times a reasonable amount is gouging and is not supply and demand. It's gouging and fucking over your customers, especially those who need your products.
Lol, okay bud. If that's the case you should start a business selling eggs for $100 each.
Eggs? You can offer to buy and sell stocks at whatever price you want. You just won't complete any trades if you offer to buy at $1 and sell at $1,000,000 dollars per share. If "supply and demand" didn't exist, you could become a millionaire in one trade.
Although, I suspect what this person means is: many markets are not free from price collusion. The stock market is very liquid because there are many buyers and sellers. You literally cannot corner the market because it would require too much money, and it's illegal.
This creates quick movements based on news and sentiment. Food prices do not operate this quickly, but they do move based on available supply and demand.
Other markets have much more collusion. When there are only three producers, collusion is inevitable. If one seller raises the price and still finds buyers, the other two will follow without any communication between them. The solution is doing whatever you can to not buy what they are selling. Demand moves markets, not supply. They are raising the price because people are paying it.
Also, better regulation from the FTC would help.