Episode 270: What's Causing Current Inflation?

 

• Scenario 1: 

• Chien-Shiung is a mid-size business owner who’s increased her company’s profit year over year to please her investors. Since 2020, the price of her product has shot up each year by 10% to keep up with the company’s past performance. She has started get some nastygrams from longtime customers. Should she lower the price of her product to please these customers, since the company has good margins?

• Scenario 2: 

• Françoise is a lobbyist who believes increasing wages drives inflation up, so he talks with his local representatives about capping wages for jobs within his city. Do you think tactics like this curb inflation?

• Scenario 3: 

• Ogunnaike moved to the US recently because her country was experiencing hyper-inflation, which made raising a family almost impossible for even the highest earners. Would it make sense for her to move to another country, since interest rates are rising and the costs of goods are rising as well?