With prices rising an increasing number of people are looking for a scapegoat. Fairly “obviously” the blame should be on those who are increasing prices – namely firms. This outbreak of greed is then being used as an explanation for why firms are increasing prices, and the suggestion is that – instead of cutting government spending or increasing interest rates, the solution is to break up monopolies.
Now I have no problem with breaking up monopolies, and I’m a huge fan of clear competition policy. But this isn’t going to deal with the “inflation” problem we are talking about. Let’s chat about it.Read more