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Thread: Everything hikes except salary!!!

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[quote=ERENCIUS,247013]Carlos and Dodger, what you both said is true.
Demand and offer, or to say it more directly, competitiveness, can be impaired in many different cases, particularly in case of monopoly (private or public), but also in the case of an informal agreement in case of oligopoly. So sometimes, the government needs to intervene as you just said because it is against the law.
Though I don't think the problem is here (or not completly at least). I don't know what Chinese noodles are made of, but assuming it is made of wheat like Italian ones, these rocketing prices can be understood because of the price of wheat. It has never been so high. US farmers (one of the biggest producer, if not the biggest) recorded very average harvests this year. The world raw materials being quoted in Chicago, the prices of wheat raised by more than 50% (because of the small quantites to sell) even in the countries which production was quite good.
Another explanation I have, which is even more uncertain, is that the survey you are talking about is not correct. Why do I think so ? Because Chinese people have never been consuming so much as they are doing today. But to consume, you need money, and if it increases it means otherwise Chinese saved a lot and are spending what they saved, otherwise the have other sources of revenu. Noone can buy more with the same amount of money, especially in a context of rocketing inflation.[/quote]

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