[bd476]

1rudeboy wrote: One way of looking at it (but just one way), is that producers are "eating" the increased price of raw commodities, and not passing it on to the next user. This would serve to keep inflation down. However, when that producer "eats" the additional cost, that's a machine he didn't buy, or an employee he didn't hire. Essentially, this is what Higgs argues: policy-makers don't, or refuse, to see it.

Thanks for the explanation, 1rudeboy. The producers/businessmen must be reimbursed, or paid, whether the payment is gained by drastic budget revamping, such as in not buying a new machine, not hiring new employees. But that also negatively impacts the economy.

How can policy makers not recognize this?

We're in deep. Hope you don't mind my pinging a few people.

[1rudeboy]

Cheer up, bd. Hyperinflation in Hell [YouTube].

[Alamo-Girl]

Thanks for the ping! Jeepers...

[SunkenCiv]

Policy-makers don’t or refuse to see it, because that’s not what is happening.