If you have robust supply and real competition, the ask should trend towards cost plus some profit, not whatever maximum price people will pay out of desperation.
what does robust supply and real competition look like when everyone gets a million a year? If everyone makes a million a year, you need a lot more than what we pay today to convince people to come into work. If you want to sell a burger, you have to sell it at a profit. Ergo, you must pay more for a burger if everyone makes a million a year. You have to convince the whole supply chain to keep working. The only way we know how to do that at scale, outside of force, is money.
Now the burger cost goes up, and working people have even more money than "normie" millionaires. I imagine people are going to be more free with their money, so they pay more for the burger. And this will settle, per the law of supply and demand.
That part is obvious.
What is not clear to me is how the new price would work out. Maybe it would work out to pretty much the same relative cost it is today, but in inflated dollars. And the rest of the market is doing the same thing. And landlords know you have the money. The squeeze comes back. Cue Econ 101/102.
This discussion sort of involves magic AI doing a lot of the work. That should be cheap.
Tight control of scarce resources is certainly something that would still be an issue. Hopefully we find ways to solve it with politics instead of violence.
Now the burger cost goes up, and working people have even more money than "normie" millionaires. I imagine people are going to be more free with their money, so they pay more for the burger. And this will settle, per the law of supply and demand.
That part is obvious.
What is not clear to me is how the new price would work out. Maybe it would work out to pretty much the same relative cost it is today, but in inflated dollars. And the rest of the market is doing the same thing. And landlords know you have the money. The squeeze comes back. Cue Econ 101/102.