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Lol economic principles do not rely on politics.
Here’s an example I have a potato you want a potato. I offer to sell it to you for 500 dollars. You can choose to buy it or not. If you don’t buy it and no one buys it it sends a message to me because you have expressed interest in the potato but not for 500 dollars. I then reduce the price to the highest point you will buy the potato for.
This is what happens with most luxury items. What many here want is for me to reduce the price to the lowest they want to pay, let’s say 1 dollar.
Now I have to cut costs the next potato I make will be inferior.
Yes I should use something other than a potato but you can substitute whatever you like for the sake of this example. We’re not dealing with the issues of commodities vs luxury items vs necessities. We’re just looking at the market setting a price for a good.
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