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(The American Prospect)   The real driver behind 2021's inflation: Price gouging and disaster capitalism   (prospect.org) divider line
    More: Obvious, Pricing, Profit, Price, Inflation, Price point, John F. Kennedy, Austrian School, Marketing  
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4844 clicks; posted to Main » and Politics » on 26 Nov 2021 at 9:05 PM (8 weeks ago)   |   Favorite    |   share:  Share on Twitter share via Email Share on Facebook



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2021-11-26 5:23:36 PM  
c.tenor.comView Full Size
 
2021-11-26 6:58:02 PM  
Going after them hard would do a lot for his popularity.
 
2021-11-26 6:59:48 PM  
The idiots behind this think we don't notice. Then they assume it's no big deal because we keep buying. You gotta eat. You gotta buy gas.

In my town, the mayor has discovered inflation but is downplaying it. He is oblivious to the huge changes in food prices since COVID hit, that on top of a much higher than average food costs around here anyway. They count on the fact that most red staters never go anywhere to hide the facts. Folks here are nice but have no idea what's it's like in the rest of the country.
 
2021-11-26 8:24:35 PM  
Would you like one marshmallow now or two later?
 
2021-11-26 9:06:42 PM  
'Murica!
 
2021-11-26 9:12:50 PM  
Naw.  Hunter Biden's laptops are the reason.   Every time they plug one in, it hacks the prices at all the gas pumps.
 
2021-11-26 9:13:08 PM  
Fark user imageView Full Size
 
2021-11-26 9:13:36 PM  

edmo: The idiots behind this think we don't notice. Then they assume it's no big deal because we keep buying. You gotta eat. You gotta buy gas.


Americans, by and large, won't. They'll blame Biden.
 
2021-11-26 9:15:54 PM  
Biden thought that his presidency was going to be about getting universal Pre-K and daycare subsidized.
It's not.
It's going to be about going after collusion and price fixing and fighting inflation. He had better do a good job of it, or else his party will lose.
 
2021-11-26 9:17:23 PM  
Wonder how much American Prospect charges advertisers for pop-ups
 
2021-11-26 9:20:11 PM  
I suspect the reason companies can raise prices and still sell enough to increase profits is because there's a lot of income inequality. I'm not talking about the top 1 percent vs everyone else, I'm talking like the top 10-20 percent vs everyone else. The top group can still spend like they normally do and they're just dinged a little bit. However, the real trickle-down is those higher prices.
 
2021-11-26 9:25:19 PM  

Harry Freakstorm: Naw.  Hunter Biden's laptops are the reason.   Every time they plug one in, it hacks the prices at all the gas pumps.


nahh.  it's his paintings.  masterpieces aren't made everyday.  Maybe the pope will have him over to do some touch-ups on the ceiling.
 
2021-11-26 9:28:02 PM  
"What the fark?" Is the thing the last person in a fark-you chain to the second last person.
 
2021-11-26 9:29:48 PM  

JungleBoogie: I suspect the reason companies can raise prices and still sell enough to increase profits is because there's a lot of income inequality. I'm not talking about the top 1 percent vs everyone else, I'm talking like the top 10-20 percent vs everyone else. The top group can still spend like they normally do and they're just dinged a little bit. However, the real trickle-down is those higher prices.


We have a number of people on this site that think earning 5x the median household income ($300k/yr) and spending $750k on a home isn't just normal, but they are still underpaid and that house is a steal.

These people are as divorced from reality as the people making billions during a pandemic.
 
2021-11-26 9:32:55 PM  
There are two types of disaster capitalism.  The first is where opportunists price gouge or accumulate wealth during crises.  The second is where the greedy rich experience the pain and consequences of being taxed after exploiting a disaster.
 
2021-11-26 9:34:28 PM  

Naido: Going after them hard would do a lot for his popularity.


You dare defy The Creators?
 
2021-11-26 9:35:50 PM  
Inflation != higher prices

Lots of things can cause higher prices.
 
2021-11-26 9:36:17 PM  

137 Is An Excellent Time: JungleBoogie: I suspect the reason companies can raise prices and still sell enough to increase profits is because there's a lot of income inequality. I'm not talking about the top 1 percent vs everyone else, I'm talking like the top 10-20 percent vs everyone else. The top group can still spend like they normally do and they're just dinged a little bit. However, the real trickle-down is those higher prices.

We have a number of people on this site that think earning 5x the median household income ($300k/yr) and spending $750k on a home isn't just normal, but they are still underpaid and that house is a steal.

These people are as divorced from reality as the people making billions during a pandemic.


How are they divorced fun reality? Their reality may not match yours, but that's not up to you to decide what they do with their money.

Also, get with the times. If you're looking at $750k homes, your income is probably closer to $150k.

Should those who make $300k/year buy some crappy house in your neighborhood just to make you feel better?
 
2021-11-26 9:40:50 PM  

GentDirkly: Biden thought that his presidency was going to be about getting universal Pre-K and daycare subsidized.
It's not.
It's going to be about going after collusion and price fixing and fighting inflation. He had better do a good job of it, or else his party will lose.


But going after it means he hates the Free Market, like some sort of commie.
 
2021-11-26 9:48:01 PM  
Sorry Subby, but nowhere does your article suggest that price gouging and "disaster capitalism" are responsible for the inflation Americans are experiencing.

However 62% of registered voters and nearly half of Democrats believe that Biden's policies are at least somewhat to blame, according to a Morning Consult/POLITICO poll.

It's funny how the Biden Administration evolved from initially denying inflation to claiming it was transitory, then admitting that okay maybe it wasn't actually transitory, then ultimately blaming others and hoping it goes away "if we're successful with the pandemic"
 
2021-11-26 9:48:57 PM  
The ultimate level of Free World Capitalism is a feudal system.
 
2021-11-26 9:50:29 PM  

rustypouch: GentDirkly: Biden thought that his presidency was going to be about getting universal Pre-K and daycare subsidized.
It's not.
It's going to be about going after collusion and price fixing and fighting inflation. He had better do a good job of it, or else his party will lose.

But going after it means he hates the Free Market, like some sort of commie.


They'll talk s*** regardless. Man needs to do what he needs to do and he needs to ignore the haters while he does it.
 
2021-11-26 9:53:25 PM  
The reaction to covid will be the gift that keeps on giving.
 
2021-11-26 9:57:02 PM  
farking neoliberals
 
2021-11-26 9:58:42 PM  

JungleBoogie: I suspect the reason companies can raise prices and still sell enough to increase profits is because there's a lot of income inequality. I'm not talking about the top 1 percent vs everyone else, I'm talking like the top 10-20 percent vs everyone else. The top group can still spend like they normally do and they're just dinged a little bit. However, the real trickle-down is those higher prices.


That's a big piece of it. The biggest slice is the absence of competition in many corners of the US economy. There's a lot of market segments in this country that have, at best, three major players controlling the whole thing.

Toss in a big dose of regulatory capture through bribery campaign donations and these little fiefdoms add tons of costs all over the place.
 
2021-11-26 9:59:09 PM  
Price change means prices shift up one time (at say 10%) and then increase with inflation at the prior rate of inflation (1.5 to 2.0) per year.  It sucks but is not debilitating.  Inflation, year after year at 10%?  Yeah, that's a disaster.
 
2021-11-26 10:02:48 PM  

MBooda: Wonder how much American Prospect charges advertisers for pop-ups


bro, do you even adblock or noscript?
 
2021-11-26 10:08:24 PM  
Fark screams raise wages and shut everything down but blame the companies when things cost more.
 
2021-11-26 10:11:55 PM  
They will charge as much as they can get away with charging. As people begin to accept inflation as part of life prices will continue to rise more than they have to rise.
 
2021-11-26 10:12:27 PM  
"Companies are raising prices well above increases in their costs."

Because it costs money to raise prices, too. They are estimating the price where they need to be, because they see inflation continuing, and they are going to that price.
 
2021-11-26 10:13:46 PM  
I am sure that when JFK, Jr. returns he will fix everything.

/Just kidding!
//I am not a brain dead QAnon Moran.
 
2021-11-26 10:16:17 PM  

Scorpitron is reduced to a thin red paste: edmo: The idiots behind this think we don't notice. Then they assume it's no big deal because we keep buying. You gotta eat. You gotta buy gas.

Americans, by and large, won't. They'll blame Biden.


I've already seen memes spread around Facebook by idiots to that effect.
 
2021-11-26 10:22:20 PM  
Raising prices and whipping up a panic about inflation is a convenient way to derail impending social spending and tax hikes, especially when you have Republicans and moderate Democrats who will be happy to parrot the corporate talking points.
 
2021-11-26 10:26:06 PM  

runwiz: They will charge as much as they can get away with charging. As people begin to accept inflation as part of life prices will continue to rise more than they have to rise.


Isn't that what all companies do?  Charge as much as they can for their products?  Like, does any company say "we could sell this for $200 a pop, but we're gonna sell it for $150 for reasons!"  If you sell your home or car, you try to get top dollar, right?  You try to sell your labor for the highest possible value.

Should companies (read: the stocks in our portfolios) just ignore the market and sell products below their market value for no farking reason?  Want to invest in an ETF that's wholly made of companies that skip out of profits?  fark no, you'd dump that in a heartbeat.
 
2021-11-26 10:26:17 PM  

germ78: Scorpitron is reduced to a thin red paste: edmo: The idiots behind this think we don't notice. Then they assume it's no big deal because we keep buying. You gotta eat. You gotta buy gas.

Americans, by and large, won't. They'll blame Biden.

I've already seen memes spread around Facebook by idiots to that effect.


Same here. Doesn't matter how much you explain, either. It's always going to be Biden's fault regardless of any other factors.
 
2021-11-26 10:31:23 PM  
Avoiding capitalism is easy enough but people won't do it. Stop buying corporate. Buy local meat, shop the farmers market, grow your own veggies in the summer, plant an edible landscape, grow your own weed, brew your own beer, make your own bread, reuse containers, recycle the rest, stop it with single use crap, stop eating fast food. Americans won't do it though, they'd rather complain about the system they keep feeding.
 
2021-11-26 10:33:00 PM  

yakmans_dad: Inflation != higher prices

Lots of things can cause higher prices.


From the Wiki:

In economics, inflation refers to a general progressive increase in prices of goods and services in an economy.[1] When the general price level rises, each unit of currency buys fewer goods and services; consequently, inflation corresponds to a reduction in the purchasing power of money.[2][3] The opposite of inflation is deflation, a sustained decrease in the general price level of goods and services. The common measure of inflation is the inflation rate, the annualised percentage change in a general price index.[4]
 
2021-11-26 10:35:32 PM  

Izunbacol: runwiz: They will charge as much as they can get away with charging. As people begin to accept inflation as part of life prices will continue to rise more than they have to rise.

Isn't that what all companies do?  Charge as much as they can for their products?  Like, does any company say "we could sell this for $200 a pop, but we're gonna sell it for $150 for reasons!"  If you sell your home or car, you try to get top dollar, right?  You try to sell your labor for the highest possible value.

Should companies (read: the stocks in our portfolios) just ignore the market and sell products below their market value for no farking reason?  Want to invest in an ETF that's wholly made of companies that skip out of profits?  fark no, you'd dump that in a heartbeat.


According to economics the Free Market  causes such intense competition that companies make barely enough to pay their shareholders a measly profit just barely above what T-bills will get you. Blessed be the Name of the Market
 
2021-11-26 10:36:45 PM  

Sumo Surfer: Sorry Subby, but nowhere does your article suggest that price gouging and "disaster capitalism" are responsible for the inflation Americans are experiencing.

However 62% of registered voters and nearly half of Democrats believe that Biden's policies are at least somewhat to blame, according to a Morning Consult/POLITICO poll.

It's funny how the Biden Administration evolved from initially denying inflation to claiming it was transitory, then admitting that okay maybe it wasn't actually transitory, then ultimately blaming others and hoping it goes away "if we're successful with the pandemic"


They are on to saying inflation is a good thing.
 
2021-11-26 10:36:51 PM  

BLayingBeads: Avoiding capitalism is easy enough but people won't do it. Stop buying corporate. Buy local meat, shop the farmers market, grow your own veggies in the summer, plant an edible landscape, grow your own weed, brew your own beer, make your own bread, reuse containers, recycle the rest, stop it with single use crap, stop eating fast food. Americans won't do it though, they'd rather complain about the system they keep feeding.


That's not avoiding capitalism.
 
2021-11-26 10:41:55 PM  

slantsix: 137 Is An Excellent Time: JungleBoogie: I suspect the reason companies can raise prices and still sell enough to increase profits is because there's a lot of income inequality. I'm not talking about the top 1 percent vs everyone else, I'm talking like the top 10-20 percent vs everyone else. The top group can still spend like they normally do and they're just dinged a little bit. However, the real trickle-down is those higher prices.

We have a number of people on this site that think earning 5x the median household income ($300k/yr) and spending $750k on a home isn't just normal, but they are still underpaid and that house is a steal.

These people are as divorced from reality as the people making billions during a pandemic.

How are they divorced fun reality? Their reality may not match yours, but that's not up to you to decide what they do with their money.

Also, get with the times. If you're looking at $750k homes, your income is probably closer to $150k.

Should those who make $300k/year buy some crappy house in your neighborhood just to make you feel better?


Elon Musks reality isn't my reality either. I can't fathom a world where you have enough money to start your own space agency, but, yet here we are.

The point is that someone making enough to afford a $750k house is wholly divorced from the reality that 50% are earning $15/hr or less in this country.

Maybe we should be slamming the top 40% of income earners with taxes that can help the other 60%?

If you can afford a $750k, house, you can afford to give 1/3rd of your wealth to the society that made that purchase accessible.

Tax the rich (and there are a LOT of rich people).
 
2021-11-26 10:44:26 PM  

Priapetic: Price change means prices shift up one time (at say 10%) and then increase with inflation at the prior rate of inflation (1.5 to 2.0) per year.  It sucks but is not debilitating.  Inflation, year after year at 10%?  Yeah, that's a disaster.


Median inflation in the 20th century was around 6.5%.  We are below that now.  Those of us who have home mortgages (65% of American households), will benefit from moderate inflation.
The majority of economists predict modest inflation through 2022, declining after.  Biden can't do much about that unless Fark economists are saying we should nationalize interest rates more than we do now to force them to what?  0.75%?  Would that make people happy?
 
2021-11-26 10:45:18 PM  

Abox: BLayingBeads: Avoiding capitalism is easy enough but people won't do it. Stop buying corporate. Buy local meat, shop the farmers market, grow your own veggies in the summer, plant an edible landscape, grow your own weed, brew your own beer, make your own bread, reuse containers, recycle the rest, stop it with single use crap, stop eating fast food. Americans won't do it though, they'd rather complain about the system they keep feeding.

That's not avoiding capitalism.


>tells you you're wrong
>4 word response
>doesn't elaborate
 
2021-11-26 10:46:09 PM  

slantsix: 137 Is An Excellent Time: JungleBoogie: I suspect the reason companies can raise prices and still sell enough to increase profits is because there's a lot of income inequality. I'm not talking about the top 1 percent vs everyone else, I'm talking like the top 10-20 percent vs everyone else. The top group can still spend like they normally do and they're just dinged a little bit. However, the real trickle-down is those higher prices.

We have a number of people on this site that think earning 5x the median household income ($300k/yr) and spending $750k on a home isn't just normal, but they are still underpaid and that house is a steal.

These people are as divorced from reality as the people making billions during a pandemic.

How are they divorced fun reality? Their reality may not match yours, but that's not up to you to decide what they do with their money.

Also, get with the times. If you're looking at $750k homes, your income is probably closer to $150k.

Should those who make $300k/year buy some crappy house in your neighborhood just to make you feel better?


What?
 
2021-11-26 10:49:13 PM  
There's alternatives to the expensive food at the supermarket.

cdn.shopify.comView Full Size
 
2021-11-26 10:50:30 PM  

SirDigbyChickenCaesar: Fark screams raise wages and shut everything down but blame the companies when things cost more.


You know what? You're right... things DO cost more because of increased wages.

Fark user imageView Full Size
From the wiki on Executive Compensation, data provided by Economic Policy Institute. 2012. Based on data from Wall Street Journal/Mercer, Hay Group 2010.
 
2021-11-26 10:51:04 PM  

BLayingBeads: Abox: BLayingBeads: Avoiding capitalism is easy enough but people won't do it. Stop buying corporate. Buy local meat, shop the farmers market, grow your own veggies in the summer, plant an edible landscape, grow your own weed, brew your own beer, make your own bread, reuse containers, recycle the rest, stop it with single use crap, stop eating fast food. Americans won't do it though, they'd rather complain about the system they keep feeding.

That's not avoiding capitalism.

>tells you you're wrong
>4 word response
>doesn't elaborate


Sometimes people choose not to elaborate because they don't think you're worth their time. Arguing with strangers on the Internet is a colossal waste of time.
 
2021-11-26 10:51:14 PM  

137 Is An Excellent Time: JungleBoogie: I suspect the reason companies can raise prices and still sell enough to increase profits is because there's a lot of income inequality. I'm not talking about the top 1 percent vs everyone else, I'm talking like the top 10-20 percent vs everyone else. The top group can still spend like they normally do and they're just dinged a little bit. However, the real trickle-down is those higher prices.

We have a number of people on this site that think earning 5x the median household income ($300k/yr) and spending $750k on a home isn't just normal, but they are still underpaid and that house is a steal.

These people are as divorced from reality as the people making billions during a pandemic.


Yeah, fark those people. I'm at a scant 12% of income plus employer kicks to my retirement account. The top 3.5-7.5% earners are real assholes and treat us 7.6-10% slaves like total assholes.
 
2021-11-26 10:52:04 PM  

137 Is An Excellent Time: slantsix: 137 Is An Excellent Time: JungleBoogie: I suspect the reason companies can raise prices and still sell enough to increase profits is because there's a lot of income inequality. I'm not talking about the top 1 percent vs everyone else, I'm talking like the top 10-20 percent vs everyone else. The top group can still spend like they normally do and they're just dinged a little bit. However, the real trickle-down is those higher prices.

We have a number of people on this site that think earning 5x the median household income ($300k/yr) and spending $750k on a home isn't just normal, but they are still underpaid and that house is a steal.

These people are as divorced from reality as the people making billions during a pandemic.

How are they divorced fun reality? Their reality may not match yours, but that's not up to you to decide what they do with their money.

Also, get with the times. If you're looking at $750k homes, your income is probably closer to $150k.

Should those who make $300k/year buy some crappy house in your neighborhood just to make you feel better?

Elon Musks reality isn't my reality either. I can't fathom a world where you have enough money to start your own space agency, but, yet here we are.

The point is that someone making enough to afford a $750k house is wholly divorced from the reality that 50% are earning $15/hr or less in this country.

Maybe we should be slamming the top 40% of income earners with taxes that can help the other 60%?

If you can afford a $750k, house, you can afford to give 1/3rd of your wealth to the society that made that purchase accessible.

Tax the rich (and there are a LOT of rich people).


You say that from a perspective of owning a 65k house.  A 750k house could be a starter shack in a bad neighborhood in any decent city. people scrape by say as the 80k house in Youngstown.
 
2021-11-26 10:54:11 PM  

pushthelimits: BLayingBeads: Abox: BLayingBeads: Avoiding capitalism is easy enough but people won't do it. Stop buying corporate. Buy local meat, shop the farmers market, grow your own veggies in the summer, plant an edible landscape, grow your own weed, brew your own beer, make your own bread, reuse containers, recycle the rest, stop it with single use crap, stop eating fast food. Americans won't do it though, they'd rather complain about the system they keep feeding.

That's not avoiding capitalism.

>tells you you're wrong
>4 word response
>doesn't elaborate

Sometimes people choose not to elaborate because they don't think you're worth their time. Arguing with strangers on the Internet is a colossal waste of time.


No, you're wrong. Arguing with strangers on the internet is peak entertainment.
 
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