Monopolies, wages and inflation
We normally don’t think of them as connected, but I feel we need to examine just how they dominate our lives. Today our shopping is controlled by a handful of businesses like Amazon, Walmart, and Google. When one company or service becomes synonymous with an activity then we need to examine if they exert too much affect on the public. For several years we have had to debate what is a fair, reasonable wage. There are any number of direct and indirect forces causing rising prices.
I believe competition is principle to a free capitalist society. Without it we lose any desire to improve at a reasonable price. With active competition we control the end price of a product. Wages are a driving force when we try to design an affordable product along with our desire to raise a family in a comfortable, reasonable lifestyle.
Not long ago our towns would have several stores and individual shops for every type of product. Multiple businesses with similar products and services kept prices down. With Walmart and Amazon selling every product conceivable at one location, it effectively eliminated any semblance of competition and eliminated the mom-and-pop businesses.
I’m not an economist, but logic tells me that to control inflation we must improve the environment for competition. To begin we must break up monopolies into their component parts. Our communities need to look at their tax laws and regulations that may make the operation of local small businesses difficult in a cost-effective manner, which makes it difficult to function competitively with larger department stores.
How do we return to a society where only the head of a household needs to be employed to support a family without adversely affecting the cost of doing business? We may be forced to institute price controls for a short period to allow cost and wages to come into balance with the cost of living.
Inflation is that demon that devalues any effort to raise income to a level permitting a family to live a comfortable life. We must effectively regulate inflations many heads from excessive profit storage, wholesale, shipping, and manufacturing cost. Monopolies are necessary and practical at some places but need constant watching and strong regulation.
The American dream is based on a middle class and is the strength of this great land.