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“What People Will Pay” Is Only Half the Story.
How Demand, Supply, and Fiat Manipulation Twist the Free Market.
At first glance, the argument seems logical: prices are based on demand. If people stop buying iPhones, the price drops. Simple, right? Wrong.
This oversimplifies an intricate system where supply, costs, and – critically – monetary policy play pivotal roles.
Let’s break it down.
The Myth of Unlimited Consumer Power
Sure, demand matters. But to say buyers hold all the power is laughable. In a true free market, prices are influenced by both supply-side costs and consumer demand. What most fiat-people miss is that modern pricing is warped by a third actor: governments and central banks flooding the economy with fiat money.
When money is debased, people don’t just pay higher prices because they want to – they pay because their cash buys less. The dollar in your pocket is shrinking faster than you can earn it, and this inflation skews the supply-demand equation into a circus act.
Why “Just Don’t Buy It” Doesn’t Work
The “boycott your way to lower prices” theory is naive at best. Imagine everyone refusing to buy iPhones until the price drops…
