They're charging what the market will bare. That's how it works...that's how it always has worked.
Inflation and Price-Gouging
- Thread starter TheCainer
- Start date
Did all of Europe print money, too, because they are going through a high inflation rate as well.
I guess when America prints money, the whole world goes into massive inflation?
The problem is more so that after having economies virtually locked down for a couple of years that there is a lot of pent up demand out there. People have saved their money and are now ready to spend it. To say there are no shortages of shipping containers or goods is complete BS. The problem now is that it is going to take a while to get supply lines and production geared up to where they were before the pandemic. In the meantime, those who do have money are willing to spend more on a smaller supply of goods which is what is driving up prices, in other words, demand is going up faster than supply.
Sadly, some have seen this as an opportune time to raise prices on goods that are in short supply. I saw a perfect example of this many years ago on a much smaller scale. During the great blizzard of 1978, many travellers became stranded at trucks stops along I-65 in Indiana. With people needing warm clothing, truckstops then sold their $15 sweatshirts for $50. Another example was actually on 9/11 and local gas stations who doubled their prices before the day was over because people were lining up to get gas because they were fearing the unknown. In both cases, the increased prices were NOT because people suddenly had an increase of money in their wallets, but it was flat out due to price gouging. Thankfully, the state government stepped in and these vendors got into trouble.
Today, though, I suppose people would probably call that the intrusion of Big Gub'mint, wouldn't they?
This is a point that does not get discussed enough. Certainly, the past two years of Covid restrictions has created a lot of demand for services and products. Folks quitting jobs of all kinds have certainly negatively affected the supply chain. Add these two together and a reasonable explanation for where we are today is demonstrated.
Yes. And they continue to do so.
Every single developed nation has been printing money for 2 years now. Pay attention.
The vast majority of high inflation has been with things that can be easily avoided or reduced in most cases. Used cars, rental cars, hotel rooms, furniture, new vehicles, appliances. Gasoline and heating fuel is relatively high because it was so low during the pandemic and we've seen these types of fluctuations before. Food is higher and that's a concern for those with low income. Rent is up modestly at 3.8%. Housing is up 5.7% which can be good for homeowners. Medical care is up only 2.5% and prescription drugs only 1.3% - thanks ACA.
Does anyone really think used cars are really going to go up 40% going forward? Or furniture 17%? Etc? The market will eventually even out. It always does.
Does anyone really think used cars are really going to go up 40% going forward? Or furniture 17%? Etc? The market will eventually even out. It always does.
I am not as sure of what Europe has been doing but, the new government in Germany is a three-party coalition of left-leaning socialist or near-socialist parties. I know they were at one point talking about following the lead of the U.S., so my guess is that have been doing what we have been doing. Germany has historically taken the lead in these sorts of issues.
Angela Merkel and Wolfgang Schauble are no longer at the top of the leadership. Those two working together were just getting Euro-zone financials in order after the last mess.
I trust Adam Smith and his invisible hands to eventually reign this in. I also have no doubt that there are businesses currently making a killing on this only because they can.
So you're saying they all followed Trump's lead?
Got it.
Do you have any figures on these? Any links?
Til too many folks are broke and I think that's gonna happen. Pain is in the future.
Thank the billionaires and the politicians...
Of course they followed trumps lead. It's no secret that the EU follows the lead of the US and has said as much and have done for decades. You do realize that the ECB is, and has been, in a negative rate environment for quite some time now, right? Did you research any of this or just run here to post the first piece of crap opinion piece you can find to defend inflation? Here is a link that took me about 10 seconds to find. It is one of about a billion out there that you can go find and do your own research.
European Central Bank Steps Up Its Stimulus as the Economy Contracts (Published 2020)
The central bank said it expected the economic impact of the pandemic to last well into 2022, prompting an expansion of relief programs.
So what? Here is the funny part. I drive by a McDonalds and a starbucks right next to each other every day on my way into work. Both have lines that wrap around the building damn near everyday. Do you understand basic supply and demand?
This is in intentional raising prices because they can moreso over a true inflation issue. They know they can raise them and then the President/Government gets blamed when has little to no control over it.
Fast food prices are insane? Wtf even get it anymore? Just go get much better takeout for very little extra
So you admit the roots of this inflation started with Trump and his policies to deal with the pandemic, and then it spread to other parts of the world.Of course they followed trumps lead. It's no secret that the EU follows the lead of the US and has said as much and have done for decades. You do realize that the ECB is, and has been, in a negative rate environment for quite some time now, right? Did you research any of this or just run here to post the first piece of crap opinion piece you can find to defend inflation? Here is a link that took me about 10 seconds to find. It is one of about a billion out there that you can go find and do your own research.
European Central Bank Steps Up Its Stimulus as the Economy Contracts (Published 2020)
The central bank said it expected the economic impact of the pandemic to last well into 2022, prompting an expansion of relief programs.www.nytimes.com
Good for you.
I don't really blame Trump or Biden. I have said all along I mostly blame the Federal reserve. But yes, Inflation most definitely started with the first stimulus in March of 2020. Probably even before that.
Politicians continue to let the fed fok us over....feel free to blame Politicians
You are talking “covid”…I was talking about this current run. Of inflation….started under Junior with the housing bubble burst….
Uh, I hate to tell you but that wasn't OP's mom. Op's mom gives it away...to EVERYBODY.
Inflation doesn't have much to do with Joe just like bush has little to do with housing bubble
If you think this bout of inflation is recent, you are kidding yourself….It has its roots with the housing bubble and bail=out back in 2007-08…dont kid yourself…
You cannot print money and give it away and cut taxes and not have something bad happen……and then Covid hit and the brakes were off…..and the last tax cut was absolute foolishness. This has been coming at us for a long, long time. And now, it is HERE!
The wheels been churning a while, that's why I said it has little to do with Biden, though he sure hasn't done anything to help.
That said, it has little to do with 2008.
It has a lot to do with 2008. QE became SOP then…and has been with us ever since. You can’t print free money forever…not without charging for it!
Except inflation didn't happen with that. This is different. The Trump tax "stimulus" is as much a culprit as anything now.
Yep he gave us nobodies peanuts and the rich lined their pockets with freshly printed billions as usual....
So, for things “desperately needed to live”, what is the way to ensure adequate supplies? That’s right: Oversized profits that attract more suppliers.
Ending “patent protections” might help too…especially in the drug/Big Pharmacy arena…
Economics may be, but the concept of supply and demand is obvious and nearly a natural law light the speed of light and such.
Patents.
Government granted monopolies mean extraordinary profits.
In a study published March 19, 2015, in the New England Journal of Medicine, authors Jeremy Greene, M.D., Ph.D., and Kevin Riggs, M.D., M.P.H., describe the history of insulin as an example of “evergreening,” in which pharmaceutical companies make a series of improvements to important medications that extend their patents for many decades. This keeps older versions off the generic market, the authors say, because generic manufacturers have less incentive to make a version of insulin that doctors perceived as obsolete.
