Cost-volume-profit is an analysis tool managers use to manage a business.
The paper David W shared shows how the tools within Neo-Fisherism lowers economic activity.
We see this in housing transaction volumes crashing, but not prices. When it comes to everyday expenses, the wage earners trying to cut back there too.
As they cut back, prices on the lower end will rise to match the lower activity (selling ten $100 items is the same as five $200 items).
This will drive wedge further as asset holders are unaffected.
Question then for folks:
How is the rising prices affecting your area?
Do you hear about and see people cutting back?
Also it feels like it the avergae wage earners is a lot more disgruntled than they were at the beginning of the year. Does anyone else agree and/or feel that way?
I'd love to hear why