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Thread: Greedflation

  1. #1
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    Greedflation

    From the pages of the oft denigrated NYT:

    As prices have increased faster than at any other point in four decades, lawmakers have scrambled for explanations. In recent months, some Democrats have landed on a new culprit: price gouging.

    The idea is that big companies have seized on inflation to jack up prices more than necessary. The White House has backed the claim, and congressional Democrats have introduced bills that target price gouging. Proponents of the theory have a catchy term for it: “greedflation.”

    For Democrats, it is a convenient explanation as inflation turns voters against President Biden. It lets Democrats deflect blame from their pandemic relief bill, the American Rescue Plan, which experts say helped increase prices. And it lets them recast inflation as the fault of monopolistic corporations — which progressives have long railed against.

    Not all progressives are on board. Jason Furman, an economist who served under Barack Obama, told me that greed was not an important factor in the rise of inflation. He described the focus on price gouging as a distraction from the real causes and solutions.

    But the White House and other lawmakers are taking the theory seriously. So in today’s newsletter, I want to look at the arguments for and against the idea that greedflation is driving higher prices.
    I believe this is an open link to the entire piece: https://www.nytimes.com/2022/06/14/b...edflation.html
    "A pessimist sees the difficulty in every opportunity, an optimist sees the opportunity in every difficulty” ---Sir Winston Churchill
    "Political extremism involves two prime ingredients: an excessively simple diagnosis of the world's ills, and a conviction that there are identifiable villains back of it all." ---John W. Gardner
    “You can’t go back and change the beginning, but you can start where you are and change the ending.” ---C. S. Lewis

  2. #2
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    Quote Originally Posted by Dave Grubb View Post
    ...greedflation.
    That word is definitely catchy. It reminds me of the film Wall Street where Douglas states, "Greed is good."

    I think he was correct, for, greed in a capitalistic system spurs risk-taking as well as growth. Yet, too much greed can damage people not economically able to handle higher prices. Ideally, it works out as others jump into greedy business practices if uncontrolled profiteering occurs.

    The problem in limiting greed is who will decide it's occurring, and what will the correction entail? Ultimately, as in the movie Watchmen, who watches the watcher?

    Hunter
    I don't care if it hurts. I want to have control. I want a perfect body. I want a perfect soul. - Creep by Radiohead

  3. #3
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    We are also seeing "Shrinkflation" produces are getting smaller.

  4. #4
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    As in toilet paper. Not only are the rolls getting narrower but the cardboard tube inside is getting larger in diameter.

    If there is a way to shrink cost corporations will pay big money to find them.

    Years ago Nescafé went from a rectangular plastic container to a oval shaped glass jar. The new jar was the same height but wider and heavier so it appeared to be a better value for the money but guess what, it held one ounce less coffee than the older plastic container, 8 oz vs 7 oz in the new “bigger” jar.

    Ever wonder why the electrical cords on your appliances, power tool, lamps etc are less flexible than they used to be?
    Last edited by Ferraridriver; 06-15-2022 at 04:49 PM.
    Dave

    Today is un-returnable !

  5. #5
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    The 48 ounce Folgers Classic Roast that I was buying at HEB for $9.98 went to $11.98, then disappeared altogether...I bought a 39 ounce can of HEB brand for $8.98 to give it a try...Amazon wants $33 for a 51 ounce can of Folgers...

    I'll put up with a lot, but I will have coffee......Ben
    The future is forged on the anvil of history...The interpreter of history wields the hammer... - Unknown author...

  6. #6
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    Quote Originally Posted by Ferraridriver View Post

    Ever wonder why the electrical cords on your appliances, power tool, lamps etc are less flexible than they used to be?
    Why?

  7. #7
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    We’re hooked on Nescafé Classico so now I buy 12 7oz jars at a time and empty one as needed into the one 8oz plastic container we kept. I’ve found Walmart to be the least expensive and shipping is free.
    Dave

    Today is un-returnable !

  8. #8
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    Quote Originally Posted by Phillbo View Post
    Why?
    It’s more expensive to use more thinner strands than fewer thicker strands for the same diameter plus the flexible insulation is more expensive.
    Dave

    Today is un-returnable !

  9. #9
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    Back in the mid 70s copper prices were high and cords were shorter.. had a B & D electric sander with a six inch cord..

  10. #10
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    My friends, we're sounding like a bunch of old men carping about rising prices and smaller products. Oh wait a minute - yeah, that's us.

    Hunter
    I don't care if it hurts. I want to have control. I want a perfect body. I want a perfect soul. - Creep by Radiohead

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