****This post may seem a bit redundant to some…..but there are many factors that go into making the price situation in this country and if I tried to explain them all in one post most people’s heads would explode.****
This is a continuous question being asked by consumers these days. We all know the food and gas are too damn high but they are not alone….housing and airline travel are extremely high.
There have been many answers offered up…..some are accurate and others not so much…..the one that increase in wages is driving the rise is bull squirt…..but not to worry the ‘free market’ will fix everything. More bull squirt!
The only thing ‘free’ about the ‘free market’ is that corporations are free too gouge and cheat the consumer (that would be you)….but let’s look shall we?
You’ve probably been told that the main causes of rising prices are wage gains and excessive government spending. Wrong.
Prices have risen and remained high — especially in critical sectors such as energy, drugs, and food — largely because giant corporations have been raising their prices to increase their profits.
They can do this because they face so little competition.
Worried about sky-high airfares and lousy service? That’s largely because airlines have merged from 12 carriers in 1980 to only four today.
Concerned about drug prices? Between 1995 and 2015, 60 leading pharmaceutical companies merged to only 10.
Upset about food costs? Four large companies now control 85 percent of beef processing, 70 percent of the pork market, and 54 percent of poultry.
Worried about grocery prices? Just three giants — Albertsons, Kroger, and Walmart — control 70 percent of the grocery sales in 167 cities.
And on and on through almost every sector of the economy, including rental housing, ad-tech, chemicals, and health care.
Monopolies are not the ‘free market’….there is very little regulation of these drivers of inflation…..creative bookkeeping.
The Federal Reserve is no help whatsoever….
Right now, the Federal Reserve Board has responsibility for fighting inflation. When prices rise, the Fed raises interest rates to slow the overall economy.
But slowing the economy with high interest rates causes many people to lose jobs. It keeps wages low. And it raises credit card fees as well as the costs of home loans, car loans, and every other borrowing cost. These burdens fall especially hard on people with lower incomes.
Call this for what it is…..”greedflation’…..
“Greedflation” (also known as “shrinkflation”), which describes a practice where corporations raise the prices of goods and services while providing less, has been a hot topic over the last few years. Corporations hiked prices during the pandemic citing supply chain issues and shortages, and high prices have largely stuck. They’re taking a toll on consumer confidence and inflation.
(observer.com)
All efforts to try and change the direction has been met with fierce opposition and lots of cash in the ‘right’ pockets….and that would have the heads and eyes looking in other directions.
Be Smart!
Learn Stuff!
I Read, I Write, You Know
“lego ergo scribo”
As far as the UK is concerned, the simple answer is also ‘Greed’. Supermarkets, oil companies, gas companies, electrical and water companies, all are making record profits on a scale never seen in history and passing on huge dividends to their wealthy investors and stockholders. To keep doing that, they are milking the customers and consumers like cattle in a shed.
Best wishes, Pete.
It is the same story all over the planet….and we stand by and let it happen. chuq
Monopolies are indeed a major problem. Virtually the entire US meat supply of pork, chicken and beef are entirely controlled by a half dozen or so companies like tyson, cargill, etc. Most of those companies have been caught in the past conspiring to manipujlate prices at either the wholesale or retail level, gotten a token slap on the wrist, and then left free to do it all over again.
There lies the problem….oversight….they pay a small amount and do it over and a small price is paid yet again….no one in their chain of greed ever feels any pain. chuq
I’m afraid you’re right. Generally it’s the company that gets fined and pays the penalty, not the CEO or the board of directors. All they do is jack up the price a few cents or squeeze the employees a bit harder or screw over the farmers they buy the crops or cattle from a bit more to make up the loss. If these fines would come directly out of the pockets of the people actually responsible for it, or if they ended up in jail for fraud, things would change I would think
Do like Iceland…they threw bankers in jail back in 2008 during the crisis….a damn good idea. chuq
The Pawns are caught in the great net of corporate greed and only mass boycotting will change anything.
I think you’re right, John. The only way this is going to stop is if people stop buying this overpriced crap.
But the people have been brainwashed to think of inflation as inevitable and they are willing to roll over and lay down under the egregious demands of the greed merchants. We need consumer activists big time.
How do you boycott food? chuq
Just like we did with beef a long time ago… and then coffee ….both boycotts worked wonders at the local supermarkets that survived.
Again how do you boycott food? All prices are too damn high but how? chuq
I guess we all live on ramen for awhile
Those prices are high as well chuq
When I look around me and see all these obese men and fat assed women running around, I have my doubts about food being too high in price.
They choose that lifestyle and would be the same if prices were low. chuq
Hogs aren’t aware of price fluctuations… I see what you are saying.