alt Hacker NewsIt doesn't make sense. If there is a collapse in demand, prices will follow.
It's also reasonable to expect prices to go down if there is a productivity boom.
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estimator7292 • today at 7:02 PM
It's only reasonable if you ignore literally everything that capitalism has done in the last 50 years.
Prices can only go up because to do otherwise harms shareholder value. None of the COVID inflation prices have come back down even though supply recovered. Prices continue going up.
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That expectation only holds together if you think of consumers as a single monolithic cohort. But prices can stay high and price out most consumers as long as there is a minority of rich ones still able to afford it:
https://www.oxfordeconomics.com/resource/bifurcated-how-the-...