In an environment of high unemployment which, invariably results in reduce spending levels, which subsequently can result in a slowdown of business, shouldn’t pricing levels be declining?
Has the basic tenet of economics which suggest high demand is the basis for price increases changed? Or is it that supply levels are so compromised that increasing prices are reflective of a formidable challenge sometime soon?
Is it understood that price increases in one country or sector can have a ripple effect upon other businesses and sectors, that ultimately find their way on the doorstep of consumers who are unable to purchase at the increased price?
Is there wide enough appreciation that some trade at a reduced price is better than no trade at all? Further yet, is consideration being given to the importance of sustaining market demand at lower than typical prices with a view to stimulating opportunities for further trade?
What if every supplier of goods and services took the decision to reduce pricing on goods and services for six months... what socio-economic effect do you think it would have?