Honest question, not trolling, can someone help me understand this?
say it takes ten guys to build a car and the manufacturer has set their profit margins so that after all of the materials & labor, they can sell their car for $10,000. Due to technological advancements, you lay off 3 of those guys, so naturally after time, the car becomes cheaper to produce – yet they’re still selling the car for $10,000 in 1980 dollars. Naturally – the price of vehicles should come down – as there is only 7 guys than can actually afford the car now – so supply & demand should resolve this; and we’ve reduced cost – so unless the profit margins are still being driven up, the cost of the product should come down, correct? Has it? How do you account for a car being $6,000 in 1980 now being $30,000 in 2012 - that can't all be inflation - Are unprecedented executive profits causing this?