Free Republic
Browse · Search
News/Activism
Topics · Post Article

To: Secret Agent Man
So amazon raises its prices in these nations to compensate,
If a business can simply raise their prices "to compensate" what's stopping them from raising them for no reason anytime they want?

The simple truth is they can't

What really happens if they raise prices for whatever reason is sales/profits are reduced.

The false notion that corporations/businesses don't pay taxes can also be used for employees. You can't just raise prices "to compensate" any more than an employee can get more pay "to compensate" for a tax increase.

9 posted on 03/04/2018 4:46:01 PM PST by lewislynn
[ Post Reply | Private Reply | To 3 | View Replies ]


To: lewislynn

Bingo - that meme is used on conservative blogs/finance articles way too much. The same is true the opposite way as well. The big tax cut windfall for businesses in the US this year will not lead to massive deflation just because their costs have come down. It’ll simply lead to mostly increased profits with some going to employees, some to management, and some in price concessions.


18 posted on 03/05/2018 4:26:36 AM PST by rb22982
[ Post Reply | Private Reply | To 9 | View Replies ]

Free Republic
Browse · Search
News/Activism
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson