Price Spread | Profits & Inflation

#economics #inflation #price

Price spread is the difference between their selling price and the aggregate prices. This translates to the difference between inputs and outputs. The rate of return depends on the price spread. The talk about the relationship between profits and inflation is beyond preposterous. This is just Keynesian nonsense. So, if a business or individual is to do well, price spreads need to be considered, not blindly asking for more inflation. Price spread is a solid principle of the political economy.

As mentioned, price spread is the difference between inputs and outputs. This may seem vague an unimportant, but I assure you it’s not. The business aspect will be discussed first. It is not uncommon to hear: there needs to be inflation so businesses can profit or there needs to be inflation so you can buy goods. This is not true, even ludicrous. Inflation is to redistribute income. This will be said because some want the masses to ask for inflation.

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