- Jun 23, 2019
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Corporations set prices based on expenses. A Corporations biggest single expense is government. 14% social security, 10% workers comp. 25% to 35% federal tax, 10% state tax, 10% mandatory liability insurance.
Yea, you are right, don't blame the rich democrats.
You aren’t an economics academic are you? Costs drive zero pricing. It’s supply and demand. costs go up due to supply and demand. Prices reflect that.
That’s like saying gas goes up because oil costs went up. Guess what? The cost to produce oil isn’t going up. It’s the demand for oil that drives the price. Now if the price goes way down expensive wells are shut down and then supply drops so prices increase. You see? Cost drive no part of pricing. Costs are the output. Not the input.
Econ 102 lecture 1.