There is actually a way to lower prices. Not that it will ever happen. But it does exist.
You just have to run a budget surplus (I know, don't laugh) and then once the government is taking in more than it spends, "delete" the extra money. This will lower the monetary base and reverse (not just stop) inflation.
Anyone who has ever watched an NFL team rest their starters after they have locked in the playoff berth understands the saying; "you can't just flip the switch." I told everyone I knew that the covid lockdowns were going to do incalculable long-term damage to our economy. Once we started paying people to stay home instead of allowing them to go to work, we were going to suffer the effects for a long time. Add this on top of the Obama scheme to monetize the debt, and it doesn't take a genius to figure out there's going to be massive, long-term troubles. Groceries are higher, but have you seen the doctor bills, roofing contractor quotes, home construction remodel estimates and auto repair bills? If you have to pay these guys 50 percent more than you paid them pre-Covid, then everybody has to charge more for their goods or services, too. I see it everywhere in WI now. My property tax assessment just went up 42.8% since last year, I kid you not. My taxes went up 15 percent last year; unless the mil rate drops- a lot- how much will the next increase be? I'm afraid this thing is like a runway train and we've got some sharp curves coming up...
I am disgusted with grocery store price inflation. This country should have inexpensive groceries.
But here is the explanation for much of the grocery inflation we have seen over the last half decade. You nailed it with the Biden era overspending with shutdowns. But it is the secondary impact of that which accelerates inflation. The easiest way for any company to increase its profit is to raise prices. With enough corporate consolidation and consolidated market share, the corporations can raise prices because they have little competition.
What the Trump Admin can do is to just take antitrust actions to the big multinational and Wall Street to break them up and return more opportunity to small producers. Also, we need regulatory relief and more support for small producers... including breaking the monopoly ownership of the distribution supply chain by the bigs.
It is crazy today for a local small producer getting his products to retailers as the distribution is locked up by a few large corporations. The middleman takes his bigger cut because he is the only game in town.
Not disagreeing with any of the information provided but don't see much attention being given to how so many things shifted to "in store pick up" or delivery oriented purchasing from Covid onward. Tons of people no longer do these mundane tasks for their household and while they are communicated by each business as free, there's a significant labor cost associated. There may be a trade off when you don't have to spend your personal time on the task but there is also a monetary impact when you're effectively outsourcing.
You are, of course, 100% right. Unfortunately, the odds that you can explain simple economics to people with degrees in the intersectionality of woodworking and who get their news on tik tok, are between slim to none. And slim is on vacation.
There is actually a way to lower prices. Not that it will ever happen. But it does exist.
You just have to run a budget surplus (I know, don't laugh) and then once the government is taking in more than it spends, "delete" the extra money. This will lower the monetary base and reverse (not just stop) inflation.
Anyone who has ever watched an NFL team rest their starters after they have locked in the playoff berth understands the saying; "you can't just flip the switch." I told everyone I knew that the covid lockdowns were going to do incalculable long-term damage to our economy. Once we started paying people to stay home instead of allowing them to go to work, we were going to suffer the effects for a long time. Add this on top of the Obama scheme to monetize the debt, and it doesn't take a genius to figure out there's going to be massive, long-term troubles. Groceries are higher, but have you seen the doctor bills, roofing contractor quotes, home construction remodel estimates and auto repair bills? If you have to pay these guys 50 percent more than you paid them pre-Covid, then everybody has to charge more for their goods or services, too. I see it everywhere in WI now. My property tax assessment just went up 42.8% since last year, I kid you not. My taxes went up 15 percent last year; unless the mil rate drops- a lot- how much will the next increase be? I'm afraid this thing is like a runway train and we've got some sharp curves coming up...
I will restack as recommended reading. Good work.
I am disgusted with grocery store price inflation. This country should have inexpensive groceries.
But here is the explanation for much of the grocery inflation we have seen over the last half decade. You nailed it with the Biden era overspending with shutdowns. But it is the secondary impact of that which accelerates inflation. The easiest way for any company to increase its profit is to raise prices. With enough corporate consolidation and consolidated market share, the corporations can raise prices because they have little competition.
What the Trump Admin can do is to just take antitrust actions to the big multinational and Wall Street to break them up and return more opportunity to small producers. Also, we need regulatory relief and more support for small producers... including breaking the monopoly ownership of the distribution supply chain by the bigs.
It is crazy today for a local small producer getting his products to retailers as the distribution is locked up by a few large corporations. The middleman takes his bigger cut because he is the only game in town.
Not disagreeing with any of the information provided but don't see much attention being given to how so many things shifted to "in store pick up" or delivery oriented purchasing from Covid onward. Tons of people no longer do these mundane tasks for their household and while they are communicated by each business as free, there's a significant labor cost associated. There may be a trade off when you don't have to spend your personal time on the task but there is also a monetary impact when you're effectively outsourcing.
You are, of course, 100% right. Unfortunately, the odds that you can explain simple economics to people with degrees in the intersectionality of woodworking and who get their news on tik tok, are between slim to none. And slim is on vacation.