Tag: Prices

Consumers Need To Bend Over

HAPPY MARDI GRAS!

This is just an FYI in case few are paying attention.

With Christmas behind us I have heard some say that it was not as expensive as predicted which was a good thing but now is the time to bend over for price hikes are coming.

Shoppers who enjoyed a brief pause in price hikes may want to brace themselves. After several months of relative calm—and holiday discounts—companies are again bumping up prices on everything from jeans to spices to software, the Wall Street Journal reports. The increases, often in the high-single-digit range, appear steeper than a typical January reset in prices, particularly for electronics, appliances, and other durable goods, economists say.

Levi Strauss, Columbia Sportswear, McCormick, and a host of smaller firms report they’re paying more for tariffs, wages, health insurance, materials, and shipping—and passing at least some of that along. Online data tracked by Harvard’s Alberto Cavallo and Adobe show the largest monthly jump in web prices in more than a decade, led by big-ticket categories.

Small businesses, facing thinner margins, are raising prices across the board or cutting products they don’t think customers will pay more for. A recent Vistage survey found more than half of small-business leaders plan near-term price increases, mostly in the 4% to 10% range, even as they worry higher tags could scare off buyers. Last week, economists at JPMorgan predicted that “inflation will re-accelerate for a time this year,” citing tariff-related costs being passed on to consumers and the “potential pass-through of the sustained weakening of the trade-weighted US dollar over the past year,” reports Reuters.

The president of Structural Systems Repair Group, a Cincinnati-based construction company, tells the Journal that tariffs pushed up steel prices 10% last year and healthcare costs for employees increased by around the same amount. “It’s not sustainable for us to tolerate that kind of increase without some sort of concession from our customers,” Bryan Erickson says.

Be prepared for the increases and think of ways to end this nightmare.

I Read, I Write, You Know

“lego ergo scribo”

Tariffs And Prices

There is a new ‘pause’ on tariffs and that should stabilize prices but it does not seem to be doing that at all….

In an interview with Fox News on Sunday, Commerce Secretary Howard Lutnick bragged about the “amazing” revenue that the Trump administration’s tariffs are delivering to the U.S. Treasury.

“The tariff revenues are amazing: $700 billion a year,” Lutnick told Shannon Bream. “That’s just net new money the government never had before. You take that for 10 years, that’s $7 trillion.”

Ignore, if you can, the still bizarre (but increasingly common) sight of a Republican executive official bragging about how much money the federal government has extracted from the economy. Similarly, try to ignore Lutnick’s questionable calculation of how much revenue the tariffs will generate—the best estimates right now suggest they will generate between $2.5 trillion and $2.7 trillion over the next decade, not the $7 trillion that Lutnick claims. (But those estimates are tricky things, given the lack of certainty surrounding all of this.)

Focus instead on the obvious question that Lutnick’s claim ought to bring to mind: Where, exactly, is all that “new money” coming from?

All taxes are paid by someone, and President Donald Trump’s tariffs are no exception to that rule. The question of who pays and in what amounts is likely to become even more of a focal point in the coming days and weeks, as the White House follows through on its threat to hit imports from dozens of countries with higher tariffs starting on August 1.  (The good news is that this ‘pause’ may keep prices from rising too much)

https://reason.com/2025/07/29/yes-tariffs-are-raising-prices/

So if the tariffs are on old why are prices still rising?

There is a good reason why.

The effects of U.S. President Donald Trump’s tariffs are winding their way through the American economy, and a new piece of analysis claims that corporate America is using them as “cover” to further jack up prices.

Progressive advocacy group Groundwork Collaborative issued a new report on Tuesday that uses corporate executives’ own words to show how many firms are taking advantage of the tariff situation by using it as an all-purpose justification for price increases. The report found many of these executives’ admissions through quarterly earnings calls in which they discussed plans to increase costs even if their inputs were not being significantly affected by the tariffs.

Among others, the report cited a statement made earlier this year by Aaron Jagdfeld, the CEO of power generation products manufacturer Generac Power Systems, who said on an earnings call that “even if we have metals that weren’t impacted directly by tariffs, the indirect effect of tariffs is that it gives steel producers and the mills and other fabricators… great cover for increased pricing in some cases.”

https://www.commondreams.org/news/trump-tariffs-corporate-greed

True to their greed corporations are using tariffs to raise prices and then when tariffs hit (if ever) then they should use the tariffs as cover for their greed and the rise in prices which will prove many Americans out of markets like housing, food, etc.

Is this what the mentally challenged voted for last year?

I Read, I Write, You Know

“lego ergo scribo”

Soon You Will Be Paying More

+++Note….this will be a another short day….sorry about that…..I go for another chemo session and I will be in no shape to do what I usual do.+++

This is just to let you know what will be hitting you the hardest in your wallet if this tariff crap continues.

Things like….clothes, party stuff, back to school supplies, etc…..

In the past few weeks, Trump has imposed massive import taxes on many U.S. trading partners ― including an astonishing 145% tariff on Chinese goods ― only to abruptly change or suspend some of these tariffs. But Trump’s chaos is already starting to freeze supply chains. U.S. businesses are cancelling or postponing shipment orders from China.

Don’t expect a toilet paper shortage like what we experienced during COVID lockdown. Because many essential goods like food, beverages and paper goods are more likely to be made domestically, they are more immune from these shortages, said Casey Armstrong, chief marketing officer of ShipBob, a global fulfillment and supply chain platform.

“You’re not going to run out of food or toilet paper, but don’t be surprised if your $3 spray bottle or favorite pair of $5 socks vanishes from shelves or doubles in price,” Armstrong said

HuffPost talked to supply chain experts about which categories of common goods are most vulnerable to disappearing from shelves soon.

https://www.buzzfeed.com/monicatorres2/donald-trump-tariffs-items-most-likely-impacted

The international trade wars provoked by President Donald Trump’s tariffs are becoming very real. Experts expect the increase in importation and exportation taxes to have a profound impact not only on prices, but on the inventory of everyday goods sooner rather than later.  U.S. importers are already canceling and delaying orders from China, subject to tariffs as high as 145%. Other companies are front-loading imports from countries with lower import taxes before the 90-day pause ends July 9. Overall, imports are slowing down, “because importers are not sure what the ultimate demand for products will be. They know they have to raise prices because they are paying the tariffs,” Jason Miller, a professor who studies supply chains at Michigan State University, told the Christian Science Monitor this week. According to experts, these 15 products will likely vanish or become significantly more expensive by summer.

https://www.eatthis.com/products-that-may-vanish-by-summer-due-to-supply-shortages/

Christmas is about to get more expensive if these things stay in place.

Speaking of Christmas….what is the most bought item for the day….toys…and Donny has taken exception to a decision by a major toy company….Mattel….

President Donald Trump threatened to impose 100 percent tariffs on toy-maker Mattel after the company said it would diversify its production to other countries, but not the United States.

Sitting in the Oval Office Thursday, Trump indicated he was not afraid to punish Mattel, the creator of Barbie, Hot Wheels, Uno, American Girl and more, for refusing to move its production in the U.S. – the ultimate goal of Trump’s tariffs.

It was in response to Ynon Kreiz, the chairman and CEO of Mattel, telling CNBC on Tuesday that it was unlikely the company would move production into the U.S as a result of tariffs; preferring instead to diversify production to other countries or just raise prices on U.S. consumers.

https://www.independent.co.uk/news/world/americas/us-politics/trump-dolls-mattel-production-tariffs-b2747530.html

If this becomes reality then that $10 Barbie will cost $20….

This will suck for the kids.

These tariffs will also effect food prices and other necessities….

This does not include the predicted rise in food prices or gas prices….do not understand the gas price stuff since according to most the US is an oil exporting country…..why would we have to pay more if there is no tariffs that need to be covered?

Just wondering.

I hear that the tariffs on China will remain at 125%…..if that continues Christmas will truly suck….that was before this possible waffle….

Earlier this week, the US struck a deal with the UK on tariffs. Now, President Trump appears ready to strike another with China. “80% Tariff on China seems right!” Trump wrote Friday morning on Truth Social. He added that it would be up to Treasury Secretary Scott Bessent, who plans to meet this weekend with Chinese officials in Switzerland, reports the Wall Street Journal. The figure of 80% would mark a pullback from the current 145% levy on Chinese goods, but it’s still higher than analysts hoped—and it would “still pose serious hurdles to trade between the world’s two largest economies,” per the Journal.

Bloomberg News reported earlier that the US would float a 60% tariff ahead of the talks in the hope that China would reciprocate. That might be why Wall Street seems only modestly pleased with Trump’s suggestion: Dow futures rose about 60 points in the wake of the news, notes CNBC. Meanwhile, a separate story in the Journal notes that Chinese exports to the US plunged 21% in April when compared to last year, as Beijing directed more of its goods to Southeast Asia, Latin America, Europe, and Africa

Sorry to be a bummer but better you consider this and make preparations for the increase prices of goods for Christmas than get caught flat footed.

I Read, I Write, You Know

“lego ergo scribo”

Another BRIC In The Wall

Just a little something to think about on this Cyber Monday.

In 2025 if all the promises are held to then the consumer should be prepared for high prices on a wide array of products…..like coffee, electronics, textiles, agricultural stuff, clothing, furniture, toys and steel….there are more but you get my drift I suppose.

There is a wall being built…..a wall of high prices…..

More possible tariffs and more high prices….

President-elect Trump continues to wield his tariff weapon: On Saturday, he threatened 100% tariffs against a bloc of nine nations if they act to undermine the US dollar. His threat was directed at countries in the so-called BRIC alliance, which consists of Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Iran, and the United Arab Emirates. Trump, in a Truth Social post, said: “We require a commitment from these Countries that they will neither create a new BRICS Currency, nor back any other Currency to replace the mighty U.S. Dollar or, they will face 100% Tariffs, and should expect to say goodbye to selling into the wonderful U.S. Economy,” per the AP.

While the US dollar is by far the most-used currency in global business and has survived past challenges to its preeminence, members of the alliance and other developing nations say they are fed up with America’s dominance of the global financial system. The dollar represents roughly 58% of the world’s foreign exchange reserves, according to the IMF, and major commodities like oil are still primarily bought and sold using dollars. The dollar’s dominance is threatened, however, with BRICS’ growing share of GDP and the alliance’s intent to trade in non-dollar currencies—a process known as de-dollarization.

At a summit of BRIC nations in October, Russian President Vladimir Putin accused the US of “weaponizing” the dollar and described it as a “big mistake.” “It’s not us who refuse to use the dollar,” Putin said at the time. “But if they don’t let us work, what can we do? We are forced to search for alternatives.” Russia has specifically pushed for the creation of a new payment system that would offer an alternative to the global bank messaging network, SWIFT, and allow Moscow to dodge Western sanctions and trade with partners. Trump said there is “no chance” BRIC will replace the US dollar in global trade and any country that tries to make that happen “should wave goodbye to America.”

Today is Cyber Monday you might want to consider the price increases to come and spend your money appropriately.

A note…..tariffs….the countries do not pay the money it is the importers they pay and is passed along to the consumer…..in other words the tariffs effect you and no one else.

Are you not pleased with your choice?

I Read, I Write, You Know

“lego ergo scribo”

Price Gouging What Is Missed

Since Biden touched on this subject and now Harris has jumped on it with both feet, much has been written abut the idea….I too have written about it and now I found another side to the subject….this one is from The Moderate Voice…..

One week ago, Vice President Kamala Harris told a North Carolina audience that she planned to propose a federal ban on price gouging for food.

In criticizing Harris, the Washington Post editorial board demonstrated its lack of basic economic theory. Then various news organizations jumped from “price gouging” to “price controls” (a la Nixon). Now Cato Institute economist Scott Lincicome insists farm policy is the culprit behind food price increases.

Thirty-seven states already have laws on the books that prohibit “price gouging” in the lay person’s understanding of that phrase. This type of prohibited price gouging concerns taking advantage of high demand or supply restrictions during an emergency (a hurricane is coming and then it landed).

Another lay definition of price gouging is charging an excessive price “because a corporation has the power to do so, aka Ticketmaster.”

What pundits don’t get about the Harris “price gouging” proposal

A fascinating op-ed….I do not necessarily agree with their assumption but I include it for my readers to have as many sides of the policy as I can locate.

After reading the piece please let me know what you think.

I Read, I Write, You Know

“lego ergo scribo”

The Thing About ‘Price Gouging’

Price gouging is a major thing now the Dem candidate has issued a statement on what she will do to stop the situation….I like the thought but it will be a fart in a hurricane.

First people do not understand the practice of price gouging…..and this article tackles the practice and tries to explain it so we all can grasp what is going on.

Price gouging in the popular imagination has a “know it when you see it” quality, but it is actually a well-developed body of law. A typical price-gouging claim has four elements. First, a triggering event, sometimes called an “abnormal market disruption,” such as a natural disaster or power outage, must have occurred. Second, in most states, the claim must concern essential goods and services. (No one cares if you overcharge for Louis Vuitton handbags during a hurricane.) Third, a price increase must be “excessive” or “unconscionable,” which most states define as exceeding a certain percentage, typically 10 to 25 percent. Finally, the elevated price must be in excess of the seller’s increased cost. This is crucial: Even during emergencies, sellers are allowed to maintain their existing profit margins. They just can’t increase those margins excessively.

…

Price-gouging bans are broadly popular—except among economists. The reason is that, in the perfect world of simple economic models, allowing sellers to charge whatever they want during periods of heightened demand is actually a good thing: It signals to the rest of the market that there’s money to be made on the product in question, which in turn leads to more supply. Accordingly, prohibiting gouging leads to less production of essential goods and services. Plus, letting prices rise helps ensure that the product will be sold to the people who value it the most.

Here, regular people seem to understand a few things that economists don’t. During an emergency, such as a natural disaster, short-term demand cannot be met by short-term supply, setting the stage for sellers to exploit their position by raising prices on goods already in their inventory. The idealized law of supply and demand predicts that new investors would rush in, but the real world doesn’t work like that. A short-term price spike won’t always trigger the long-term investments needed to increase supply, because everyone knows that the situation is, by definition, abnormal; they can’t count on a continued revenue boom. During a rare blizzard, sellers might jack up the prices of snowblowers. But investors aren’t going to set up a new snowblower-manufacturing hub based on a blizzard, because by the time they had any inventory to sell, the snow would long be melted. So after the disruption, all goes back to normal—except with a big wealth transfer from the public to the company that raised prices.

https://www.theatlantic.com/ideas/archive/2024/08/economists-kamala-harris-price-gouging/679547/

So is Harris pandering?  I think so.

Vice President Kamala Harris called for a federal ban on “price gouging” on groceries. From a strictly economic standpoint, there are so many things wrong with this proposal that I don’t know where to begin.

But the worst of it isn’t in the policy analysis — it’s in what this pandering says about the chances of a serious discussion of difficult issues with the American voter.

Let’s start with the policy analysis. Even without referring to the current situation, there are three well-known problems with a ban on price gouging. First, grocery stores typically have extremely low profit-margins, on the order of 2 percent or less, reflecting their limited pricing power in a competitive industry. So this is not the right sector — if there ever is one — to target with price-controls.

Second, it is very difficult to define price gouging. How do you distinguish it from a rise in prices owing to shortfalls in supply or surges in demand?

Third, any controls on prices will constrain incentives for producers to bring additional goods and services to markets. This is why price-controls usually lead to shortages more injurious than the price increases they are designed to stop.

Harris’s call for price controls on groceries is more pandering than policy

I want to hear specifics….ideas are good but specifics will convince me.

Will this be just another promise that will be swept under the rug of the Oval Office?

You tell me.

I Read, I Write, You Know

“lego ergo scribo”

Someone Explain Higher Food Prices

Anyone that keeps an eye on the economy has written something about the cost of food these days….I know I have….

There are many explanations from the absurd to the sublime…..from it is all Biden’s fault to the price gouging of some (most all) food distributors…..all the words written have done little to curb the upper trajectory of prices…..some groups will give lip service to make us all feel better but little action comes.

I read another article that tries to explain this thorn in the consumers ass….

This piece is in Food & Wine…..

Back in 1993, political activist Jimmy McMillan coined the phrase, “The Rent is Too Damn High” while running for mayor of New York, and later, governor of the Empire State. Three decades later, consumers across the country are saying the same thing about rising grocery prices.

Federal statistics bear that out. Since the pandemic began, the Federal Reserve says grocery prices have risen 25%, leaving consumers — and even President Biden — fuming over food costs. And supermarkets and big box stores are scrambling to reverse that perception. 

In February, Walmart implied that consumers should expect to see lower prices. Doug McMillon, its president and chief executive, contended that certain items were lower than in 2023 — including eggs, apples, and deli snacks, although he acknowledged they remained higher for some products such as asparagus and blackberries. 

Meanwhile, global home furnishings and food giant Ikea says it is cutting prices on hundreds of items. In a December email, it told consumers to look for signs reading “New Lower Price,” which have begun appearing in stores. It’s also offering weekday dining specials to members of the Ikea Family program, with meatball dinners for $3 on Mondays, and 50% off entrées on Fridays. But, effective Feb. 1, Ikea eliminated the program’s 5% across-the-board discount, meaning members were paying more for some items.

https://www.foodandwine.com/usa-inflation-food-costs-8622334

Did this piece explain it for you?

Not so much for me….I still believe that instead of lip service from Biden and the Dems the president could do something besides talk….after all he is the president but that means little these days….he is president that owes lots of favors to special interests and agribusiness is one of this entities.

Prices will remain high and continue to go up as long as there is no backbone to change this thing in DC.

Sorry guys but I cannot eat politician’s words….I wish we could literal get them to eat their words.

Side Note:  A couple of days ago I wrote about the egg shortage in Europe and I asked how long will it take before we are told the same thing….apparently not long at all for this is the report I read today….

The largest producer of fresh eggs in the US said Tuesday it had temporarily halted production at a Texas plant after bird flu was found in chickens, and officials said the virus had also been detected at a poultry facility in Michigan, the AP reports. Cal-Maine Foods, based in Ridgeland, Mississippi, said in a statement that approximately 1.6 million laying hens and 337,000 pullets, about 3.6% of its total flock, were destroyed after the infection, avian influenza, was found at a facility in Parmer County, Texas.

“The Company continues to work closely with federal, state and local government officials and focused industry groups to mitigate the risk of future outbreaks and effectively manage the response,” the statement said. “Cal-Maine Foods is working to secure production from other facilities to minimize disruption to its customers.” Cal-Maine said it sells most of its eggs in the Southwestern, Southeastern, Midwestern, and mid-Atlantic regions of the United States. The company said there is no known bird flu risk associated with eggs that are currently in the market and no eggs have been recalled.

Here we go once again!

I Read, I Write, You Know

“lego ergo scribo”

Why Are Groceries So High?

I have been going back and forth with my friend John of https://johns-web-space.com/ about the price of food and how and why it just keeps getting worse.

Prices go up when gas goes up and the excuse is the cost of transportation but prices never go down when gas goes down….so what drives these continuing price increases?

Americans have had to weather much in the years since the COVID-19 pandemic first began, including price inflation of basic necessities. Grocery bills, especially, are a drain on household finances. But, as recent reports show, inflation is easing across many industries, and yet food prices overall have remained stubbornly high. Not only is that an indication of a deep rot at the heart of the food industry, agribusinesses, and corporate grocery chains, but it is also a clear sign that we need to repair our entire food system.

Reporting on a new Census Bureau survey, USA Today’s Sara Chernikoff found that “[t]he average American household spends more than $1,000 per month on groceries.” And, while it’s not surprising that those residing in expensive states like California have high grocery bills, there’s little relief for those living in states with lower costs of living. An average California family’s weekly grocery bill is $297.72, but an average North Carolina family’s bill is $266.23—nearly as high.

Attempting to downplay this reality, Paul Donovan, chief economist of UBS Global Wealth Management, wrote in an op-ed in the New York Times that Americans might be overestimating how serious inflation is, feeling the pinch most especially when they buy something as small as a candy bar. “[C]onsumers perceive inflation as higher than it actually is,” wrote Donovan. Further, he claimed, “[h]umans are genetically programmed to emphasize bad news over good news when they make decisions.” Donovan is implying that we’re just imagining high grocery bills.

In fact, inflation in the grocery industry has been higher than in other industries, rising 25 percent over the past four years compared to 19 percent overall, and many have pointed to simple greed as the reason: food prices are high because the companies setting prices think they can get away with padding their profits. Since we all have to eat, naturally this hits lower-income families harder, rather like a regressive tax. A new report by the Groundwork Collaborative found that in 2022, “consumers in the bottom quintile of the income spectrum spent 25 percent of their income on groceries, while those in the highest quintile spent under 3.5 percent.”

The Real Reason Your Grocery Bill Is Still So High

There was a time when companies were responsible members of society….that is no longer the case….it is more important to squeeze as much cash out of the consumer as possible and give nothing in return other than a receipt that would make you sick.

I am sick of hearing how low our inflation is these days…..apparently food is not considered in the equation….for people living on a budget inflation is killing them….both literally and physically.

Thoughts?

I Read, I Write, You Know

“lego ergo scribo”

Closing Thought–27Nov23

I thought it was about time for me to reinstate the ‘Closing Thought’ portion of my day.

EGG PRICES

A few months ago the word came out that many chickens had to be destroyed because of Avian Flu and there would be a shortage of eggs for market….as soon as word got out supermarkets in my area raised prices of eggs to 6 and 7 dollars a dozen….not all followed suit but the chain stores seem to be more inclined to do so.

I said then that it was all so much bullsh*t.

There has been a legal ruling against some egg producers….

An Illinois jury ruled this week that several major egg producers conspired to limit the country’s supply of eggs in order to raise prices in a case stemming from a federal lawsuit originally filed 12 years ago, per the AP. Kraft Foods, the Kellogg Company, General Mills, and Nestle USA alleged in the lawsuit originally filed in 2011 that producers used various means to limit the US domestic supply of eggs to increase the prices of eggs and egg products during the 2000s, causing them to overpay for eggs. The time frame of the conspiracy was an issue throughout the case; jurors ultimately determined damages occurred between 2004-2008. A jury unanimously delivered its verdict Tuesday in the Northern District of Illinois and damages will be decided in a trial scheduled for next week.

The jury found the egg suppliers and trade groups who participated in the conspiracy were Cal-Maine Foods, United Egg Producers, United States Egg Marketers, and Rose Acre Farms, the family company of John Rust, who’s running for Indiana’s US Senate seat in 2024. Court documents show the defendants denied the claims. However, the jury found the egg suppliers exported eggs to reduce the overall supply in the domestic market, as well as limiting the number of chickens through means including cage space, early slaughter, and flock reduction, court documents say.

The jury found the egg suppliers and trade groups who participated in the conspiracy were Cal-Maine Foods, United Egg Producers, United States Egg Marketers, and Rose Acre Farms, the family company of John Rust, who’s running for Indiana’s US Senate seat in 2024. Court documents show the defendants denied the claims. However, the jury found the egg suppliers exported eggs to reduce the overall supply in the domestic market, as well as limiting the number of chickens through means including cage space, early slaughter, and flock reduction, court documents say.

Bloomberg Law reports lawyers for Cal-Maine Foods “appeared stunned by the verdict,” with two lawyers dropping their heads to their chests and leave them there. For the first time, the defendants have been held liable for their antitrust violations,” Brandon Fox, an attorney representing the food manufacturers, said in a statement. “We are now going to turn our attention to the damages phase.” Bloomberg Law reports the same jury will decide the damages amount in a trial slated for next Wednesday, and whatever number they settle on will be trebled.

I say good!  Make the bastards pay and the candidate should withdraw for being a money grubbing tool.

Turn The Page!

I Read, I Write, You Know

“lego ergo scribo”