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It's certainly true that fluctuations in the price of common goods are felt more by those with less and that produces more visceral reactions, frustrations that can be expressed in democratic systems through voting, which in turn can influence policy (with good intentions, but for the worse). However, the characterization of this cycle's impetus seems specious. Markets are good at addressing demands within a scope, but that scope never exceeds the scope of the government nor the interests – present or future – of the society. Externalities will always be a problem, and gone unaddressed they can grow into greater problems. Perhaps government is the wrong tool for many aspects of regulation. Regardless, the issue of market failures should not be relegated to inconveniences that the society could healthily live with, like poor-quality mugs.

We should also distinguish society from government, unless you're arguing that society shouldn't exert its will and enforce its interests beyond individual choices to spend or not to spend?

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