Date: 7/17/2010

How is it the price increase?

In the normal business operation, whatever profit that is gained, is put back into business account for business refunding for a certain term of business phase. But for greedy intention, the capitalist takes away the raw profits from the business account and transfer to a neutral bank or invested elsewhere. When most profits are taken from a business account (to be fed to another venture which may not be profitable or just to keep for plain greed), not enough money is left for refunding the capital and the prices of products have to be increased to gain refunding for the business capital. The burden of refunding the business capital is passed on to the consumers in the form of prices increase. This procedure is repeated many times and that explains why prices of goods or commodities increase from time to time.


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