Sen. Bernie Sanders (I-Vt.) on Wednesday introduced a bill to establish a standard four-day workweek in the United States without any reduction in pay. The bill, over a four-year period, would lowe…
Reducing net profit doesn’t have any impact on pricing in capitalist markets. It’s not like capitalists have some specific profit percentage they are allowed to hit (unless they’re in a very regulated industry like grid or water supply). They want infinite returns, and they’ll increase prices as much as the market allows to generate more profits.
Capitalists don’t look at a net profit of 4.4% and say “yup that’s enough”, but if it were 2.8% they’d say “damn guess we have to increase prices for customers, I really wish we didn’t have to do this”.
They might increase prices as a retaliatory measure. The same way businesses slashed hours as a result of Obamacare. They didn’t have to, but it benefited them to, and they didn’t see a downside.
They might be able to increase prices, blame it on this law, and have people who are aligned politically with them put up with it and maybe even support their business more to “stick it to the libs”. They already do this with things like inflation, blaming it on Biden and then increasing prices far more than necessary.
Oh, yeah, absolutely. Price policy is a whole different topic. Only monopolies can afford to increase them just because they’re not meeting the expected quota.
Don’t know about “retaliatory measure”, it’s hard to imagine companies uniting like that over it. Usually, they just play by the rules, and those could be the new rules (strong emphasis on “usually”). In fact, if the management is competent, it’s likely that they have already accounted for it, just in case, after the news dropped.
Reducing net profit doesn’t have any impact on pricing in capitalist markets. It’s not like capitalists have some specific profit percentage they are allowed to hit (unless they’re in a very regulated industry like grid or water supply). They want infinite returns, and they’ll increase prices as much as the market allows to generate more profits.
Capitalists don’t look at a net profit of 4.4% and say “yup that’s enough”, but if it were 2.8% they’d say “damn guess we have to increase prices for customers, I really wish we didn’t have to do this”.
They might increase prices as a retaliatory measure. The same way businesses slashed hours as a result of Obamacare. They didn’t have to, but it benefited them to, and they didn’t see a downside.
They might be able to increase prices, blame it on this law, and have people who are aligned politically with them put up with it and maybe even support their business more to “stick it to the libs”. They already do this with things like inflation, blaming it on Biden and then increasing prices far more than necessary.
Oh, yeah, absolutely. Price policy is a whole different topic. Only monopolies can afford to increase them just because they’re not meeting the expected quota.
Don’t know about “retaliatory measure”, it’s hard to imagine companies uniting like that over it. Usually, they just play by the rules, and those could be the new rules (strong emphasis on “usually”). In fact, if the management is competent, it’s likely that they have already accounted for it, just in case, after the news dropped.
They don’t all need to band together. They just need a few big ones to do it, then everyone else will just jump on the bandwagon.