No doubt you have followed all the stimulus talk, watched gas prices rise recently and have seen prices on many goods and services steadily increase. While price inflation, over time, is expected; rapid increases without rising income, is a clear problem for most Americans. But the good news is another round of government checks, right?
Recent gas price increases are the result of multiple factors. Economic recovery from covid shutdowns and increased demand is driving consumption. On the pricing side, recent instability in the Middle East (production output), fears of green technology and related legislation added to expected increases in seasonal driving and world commerce as major factors. Now, the $1.9 trillion dollar relief bill is expected to impact consumer spending and consumer demand. Gas prices should top $3.00 by next month nationally, before making a run at $4.00 in some areas this summer. (sources: reuters.com, foxbusiness.com)
On the consumer food front, grocery prices are beginning to reflect external pressures of liberal, legislative attempts. With covid health restrictions impacting many businesses nationally, food prices are showing the effects. This is due to “required” sanitation equipment and products as well as staffing concerns. Even store salad bars and buffets, very profitable for grocers, are impacting profitability as they are prohibited in many locations.
Pressure to increase the minimum wage has resulted in many businesses and entire states, reactively increasing employee wages. As supplier costs will only increase, the consumer will pay the price.
The Wall Street Journal reports:
“Some grocers are pushing back, saying that shoppers will bear the costs. Grocery executives say rules to raise wages—in some cases by as much as $5 an hour—will increase expenses by about 30% in stores and squeeze already thin profit margins. Some chains including Kroger Co. say they will close some stores in areas with new wage mandates, while others say they are boosting food prices or may cut back on services like checkouts.”
The Biden Administration and the liberal-controlled Congress are preventing economic growth while doling out federal benefits that may not be needed in most areas. Meanwhile, limiting full economic recovery that would occur naturally if restrictions are removed is the path currently followed. It seems clear that dependency on the government is desired and the related price inflation will only weaken spending power, causing people to desire more federal money into their pockets. Keep a record of your costs to track this over time, or simply make a mental note of any change and use the information to lobby elected leaders.
Episode 11: Eisenhower, D-Day and Responsibility – The Republic 1776
- Episode 11: Eisenhower, D-Day and Responsibility
- Episode 10: The Left V. George Orwell, Ben Franklin, Abe Lincoln and Thomas Jefferson
- Episode 9 Free at Last: M.L.K. and systemic racism
- Episode 8 Ronald Reagan, "We are a nation that has a government — not the other way around"
- Episode 7 George Washington
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