youre slightly off target. yes, companies could benefit from higher cost but theres a little thing called competition. why doesnt coke raise their prices to unreasonable levels? because pepsi would take all their business.
Quoting: Anonymous Coward 74062501 That is not a good comparison
Coke and Pepsi are similar enough yes, where the consumer wins in that case
But for Pharma, they charge whatever the market can handle and then back down a little if there is resistance
Look at the prices of some drugs raised from 2 dollars a pill to 750 dollars a pill by that jerk after he bought it.
He did it because he can and his response was insurance will pay for it anyway, well duh, who pays insurance premiums?
How about an Iphone, it costs 200 dollars to make including labor and they sell it to Americans for 650 dollars
Business Prices their products with what they can get away with.
This is why I think it is nonsense when people say consumers pay tax, not business.
If we raise taxes, they will raise their prices.
Well, if the market can handle it, then why don't they raise it now so they can give more profits to the financial sector?
If a business has to make a cut, they can reduce worker wages, increase prices to consumers and shareholders and execs can take a cut
They are not in the business of charity and employ and pay workers what they can get away with, they also already have prices that they can get away with in the market.
That means they have to cut exec and shareholder pay.
Cry me a river on that
