Capitalism and the capitalist media, even education, teaches us that inflation is a fact of life. That’s not true. This is where you should be asking questions.
Labor cost. One myth we are told is that the cost of labor drives up the cost of goods and services. This raises the question of why workers need pay increases. Of course, the answer is the increasing price of goods and services, often just for basic survival. If prices did not keep increasing, workers would not need increases to their pay.
Automation. One method businesses use to decrease the cost of labor is automation and technological advances. While it comes at an initial cost for capital outlay, the entire reason companies do this is because it saves money on wages and worker benefits in the long term. Technology increases productivity, meaning each worker can make more products, serve more customers. This means the company needs fewer workers. Pay remains the same, the cost of benefits stays the same or keeps costing the worker more each year. Automation often completely eliminates jobs. Do prices go down commensurate with the decreased labor cost? No but company profits keep going up, prices keep going up and corporate profits keep going up.
Raw materials. We hear the argument that the cost of raw materials keeps increasing. Typically, this is not true. Corporate mega-farms use more machines than labor. While labor costs have increased, go back to the second paragraph of this article. Many raw materials are imported because of lower cost. Like steel. China isn’t “dumping” unwanted steel on corporations. The American corporations are buying that steel. This goes back years, when corporations began buying steel from China because they did not want to pay for the cost of American labor. Which caused the near collapse of the US Steel industry. Consumer prices never decreased but corporate profits kept increasing. Pick any raw material that is imported yet available domestically and the same rule applies.
Lawsuits. One claim is that lawsuits drive up the cost of goods and services. You would have to look more closely by specific industry and company but lawsuits account for less than 1% of the cost of business in this country, overall. Even when faced with lawsuits, the damages are minor and still make the abuses which led to the lawsuits worth the price, leaving corporations with massive profits. The worst thing that happens is that their stock price dips for a few days. Who pays the cost of the lawsuits in reality…