It could, at least temporarily. But there is no reason to belive it won't stabilise again.

Increased demand without increased production will increase prices. But then producers will follow, and production will increase, and prices will stabilise.

Increased tax on the rich and distributing it to poor moves a tiny bit of the combined 'voting power' we have over production as consumers to the poor, so there will be slightly less luxury cars produced and slight more food.

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conductr 4 days ago | parent | next [-]

Stabilizing means we’ve done this whole thing for nothing.

	▲	Epa095 4 days ago \| parent [-]
		No, because more poor people get to eat, which is a good thing.

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hasnd 4 days ago | parent | prev [-]

If they could produce more they already would.

The only way of fixing this is decreasing demand by reducing the population numbers.

	▲	Epa095 4 days ago \| parent [-]
		Why would they produce more if they could? It must meet the demand at the current price point. More money goes to poor people, more demand for food at the current price. That will increase the price, which will increase production. Short term the price might go up a lot, but then new production will come online, and the prices will fall back to today+delta.