Does government spending cause inflation?

[otto105]

when gov taxes business, consumer costs go up and up so said business can maintain its profit and stay in business...duh

simpleton

 

[otto105]

Competition is over rated. Government controls competition in nearly every aspect through taxes, fees and tariffs.

Laughable response

 

[rampart]

Correct.

So you focus on the "goods" end of it & make it easier for companies to produce more...Just like Trump did! (supply side economics).

If the goods are there to buy with that excess money...no inflation, When that excess money buys up all the goods...BIG INFLATION!

2 sides to this coin...GOODS and MONEY SUPPLY,

so, an american company will increase supply to decrease unit cost to thew consumer?

not a chance.

any graduate of an mba program will be calling his "competitors" to maintain the price, or buying those "competitors" out

 

[rampart]

Competition is over rated. Government controls competition in nearly every aspect through taxes, fees and tariffs.

while competition is over rated, i disagree that government has as much influence over wall street. the real selectors of winners and losers.

 

[Concerned American]

while competition is over rated, i disagree that government has as much influence over wall street. the real selectors of winners and losers.

Have to disagree. Wall street is affected if Janet Yellen clears her throat.

 

[Thunk]

so, an american company will increase supply to decrease unit cost to thew consumer?

not a chance.

Just ask henry ford.

 

[rampart]

Just ask henry ford.

a lot of game theory has gone into the science of profitably selling cars since ford's day, but even then ford would rather buy the dodge bros rather than actually compete.

 

[Mexicano]

so, an american company will increase supply to decrease unit cost to thew consumer?

not a chance.

any graduate of an mba program will be calling his "competitors" to maintain the price, or buying those "competitors" out

That would be oligopolistic competition.It is real and it happens , but not all competition is oligopolistic. So , yes sometimes a competitor will decide to increase production and lower its prices, especially if he is a foreign competitor ( like China).