We pretty much knew this, but still...
Thinktank report says ‘resounding evidence’ shows companies continue to keep prices high even as their inflationary costs drop
www.theguardian.com
Goodness, what a joke article from a dopey organization. It says right on Groundwork Collaborative’s website they want to increase the power of government at the expense of the private sector. Not much thinking going on in this "think" tank. Puke funnel indeed for those who like their logic subservient to their tribal leanings. I’m not sure what’s the bigger joke: that people have strong opinions on economics/markets/governmental actions and consequences when they don’t know anything about said subjects, or that their lack of knowledge on the subjects is somehow a badge of honor among the tribe.
This is the kind of data points that hurt the Biden campaign's message.
Biden goes to Cook Out and Berger goes viral
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Same item at the same store, three years apart. 28% increase.
I suppose it is possible that there may be some outrageous profit-taking in fast food, but it is not clear why their competitors do not forego the outrageous profits but earn normal profits while taking over market share.
It's always sadly amusing that so many blame businesses for rising prices, while ignoring the blatantly obvious culprit. When I worked for a national homebuilder, in the years leading up to the 2008 crash, one could easily see how government policies at the national and local levels were creating a bubble of catastrophic proportions. The federal government created artificially high demand, which put dangerously upward pressure on prices. Local governments (Maryland, in my case) implemented policies that forced prices even higher – density restrictions, increased onsite and offsite amenities, new impact fees*, etc. All these extra costs gets rolled into the cost of the house. And since we made X in profit, the higher the sales price the higher the profit (in dollars, not in percentage). So, who got blamed by the local governments and their bootlicks in the media for high housing costs (and, gasp, extra profits)? The builders, of course. So, then comes the affordable housing requirements. This only pushes the cost of market rate homes even higher. Congratulations. The house you want to buy is now many tens of thousands, if not $100,000+, more expensive than it should be. And as the crash is coming, the unintended (but very predictable) consequences of people having risky mortgages and homebuilders having too much inventory is going to set off earthquakes throughout the economy. TANSTAAFL.
*Most of these impact fees served no purpose other than to fill the coffers of city and county governments. Greedflation indeed! Idiots with political power can do damage that can destroy people's lives for years. But, the dopes from places like Groundwork Collaborative want more of this.
