Quote:
Originally Posted by rubecube
I don't think it's impossible to prove. If companies are creating false scarcity and charging higher prices despite not paying increased wages or other associated costs, that's going to increase inflation faster than almost any government monetary policy.
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Well its not like false scarcity was created overnight or even over a couple of years.
The nature of how Canada operates within certain industries like grocery chains or telecoms allows them to drive prices up and keep them high due to no competition or all their competition doing the same.
In my industry a lot of the companies move together on pricing as well, but because they have to compete with American or European companies who provide the same product, competition is much greater and prices are kept low, and even despite having gone up the past couple years, have now begun to come back down.
At this point there is no reason for a grocery chain to lower prices even if their costs WERE less.