Why are prices so high? Robert Reich answers your questions – Stateside with Kai and Carter
Many Americans say rising costs are making it harder to afford petrol and groceries, prompting them to cut back on luxuries. In a video discussion, presenters Kai Wright and Carter Sherman ask former US labour secretary Robert Reich to explain what is driving prices and who may be responsible.
Reich examines examples including a $16 cheesesteak and the price of a Nintendo Switch 2, which the article says is being affected by artificial intelligence. The discussion follows questions from readers about what has become too expensive in their lives and links economic pressures to the US election.
- Many Americans are struggling with everyday costs.
- Robert Reich explains factors behind price rises.
- The discussion looks at food, gaming and AI.
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Robert Reich is a US economist and former labour secretary, a government role focused on work and employment. He is speaking with Kai Wright and Carter Sherman, presenters of Stateside, a programme about American life and politics.
Prices for essentials such as food and petrol affect household budgets, while rising costs can lead people to spend less on other things. The discussion considers why prices vary across everyday items and how economic pressures connect with political choices, including elections.
Both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
One case is that prices reflect pressures across supply chains, production and demand, so blaming any single actor can obscure the causes. Strong demand for goods, higher costs for labour or materials, and disruptions in energy or transport can all contribute; responding effectively requires identifying which pressures are driving each price and avoiding policies that make supply more costly.
The case against
Another case is that prices can remain high when firms with market power have room to raise prices beyond their increased costs, while workers and consumers have little bargaining power. From this perspective, concentrated markets and weak competition can turn temporary shocks into lasting affordability problems, so scrutiny of corporate pricing and policies that strengthen competition or household incomes deserve attention.