Comment by danaris
2 years ago
No; as I explained in the linked post, they changed the conditions, which allowed the companies to continue raising prices (and refuse to lower them) even long after the actual supply shocks were over.
...Alongside the other, more gradual changes, which (as I explained in the linked post) weren't fully noticed or appreciated until the shocks of the pandemic.
Really, I explained the full sequence of events very clearly in the linked post, and simply repeating "it was just the supply chain issues, no greed involved" does nothing whatsoever to refute what I said there.
What conditions? Your post ultimately does boil down to "companies realized that they can just raise prices and make more money". Completely absent from this narrative is a reason why they couldn't have raised prices earlier.
Of course there are reasons why: the supply shocks during the pandemic are largely resolved, but there's still pent up demand. That, and a massive influx of cash that enabled consumers to pay those high prices. But this isn't "greedflation" this is a completely expected outcome of interrupted production and a large increase in money supply: more money to spend, but fewer things to buy, leading to high prices.