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Price increases are bounded by substitution of goods and "what the traffic will bear."

The things - real estate, education, health care - that are inflating most rapidly are doing that because they are subsidized. When you subsidize a thing, it costs more and you get more of it

Ag subsidies are different because that's a sort of Nash equilibrium - the cost of inventory underruns exceeds the mild price increase from overproducing agricultural products.




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