Correct. While producers of the raw materials (corn, wheat, rice) have seen prices decline when adjusted for inflation, the producers of finished products (Corn Flakes, Wheaties, etc.) have seen prices rise even when adjusted for inflation. But there are only four or five big middlemen, so it's a lot easier for them to capture the increased margins than the tens of thousands of farmers who produce the raw materials.
Similarly, if Apple could reduce its shipping costs to near zero by teleporting the raw materials to Foxconn and then teleporting the finished goods directly to retail outlets, they'd still charge $600 per iPhone, even though they have competition from other phone makers in the form of Android.
The Invisible Hand doesn't always work the way it did in Adam Smith's time.
Similarly, if Apple could reduce its shipping costs to near zero by teleporting the raw materials to Foxconn and then teleporting the finished goods directly to retail outlets, they'd still charge $600 per iPhone, even though they have competition from other phone makers in the form of Android.
The Invisible Hand doesn't always work the way it did in Adam Smith's time.
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