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> there's an intermediate step where somebody actually set a higher price

Yes. But the most common reason for setting up higher price is because you can, because there's more money flowing in the economy than it should be. Going into details is in the grand scheme of things about as useful as rearranging chairs on the Titanic.

> Why aren't there cheaper cars? Not because there's more money, but because nobody decided to make and sell a cheaper car. That's the stuff that we should be asking about.

Yes. But we should be asking why cars are 3% more expensive, because their prices rose by 29% while the inflation is "only" 26% (don't remember exact numbers), not why car prices rose 29%. If you don't deduct inflation you are interested in wrong things because large numbers make you think there's a drastic reason.

Does 3% even deserve and explanation? Isn't it fully explained by toxic advertising making consumer want heavier car year after year, that naturally cost more?



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