Posted on 12/01/2023 1:20:03 AM PST by spirited irish
The term “greedflation” describes scenarios where companies use the cover of inflation to hike prices disproportionately, boosting profits at the expense of consumers. This practice has been especially prevalent during the post-pandemic recovery phase, when inflation provided a convenient pretext for such actions.
Greedflation, a term that emerged prominently during the high inflationary period of 2021 and 2022, encapsulates how some companies exploited the situation to significantly raise prices, often well beyond their increased costs. This practice wasn’t merely a reflection of market dynamics but a strategic maneuver to maximize profits under the guise of inflation.
The impact of greedflation extends beyond just numbers on a balance sheet. It directly affects families, particularly those in lower and middle-income brackets. When prices for basic necessities like food and household goods are inflated artificially, families face heightened financial strain.
(Excerpt) Read more at patriotandliberty.com ...
The oblivious consumers need to even notice it first.
The government looks the other way at these practices as long as companies “play ball” with them. That is the essence of corporatism. Anti-Trust laws?!?! What are those?!?!?!
"now you know what a Value Added Tax looks like, except the money doesn't go into the pocket of a company providing a value or service, but the offshore accounts of people who produce nothing but pain and misery"
“The oblivious consumers need to even notice it first. “
True, but the bulk of the problem is we now have two generations of consumers who have been brainwashed into believing everything they are told and just accept it and pay it without question or complaint. “you can’t live without this” no matter the price marketing. Let alone ever consider changing brands or just not buying it to protest the price of it and force the price back down.
Suppliers and retailers deceptively take advantage of this ignorant mindless consumerism without principle like crazy.
China is a large pork user. They have purchased several large producers. The demand for pork and hence price is much higher for pork. Also there is addition price pressure for pork with global supply falling.
“The government looks the other way at these practices as long as companies “play ball” with them. That is the essence of corporatism. Anti-Trust laws?!?! What are those?!?!?!”
Absolutely. And they play the legislative game. They pass laws and regulations they know only the big corporations can afford to comply with, which squeezes the little companies out of business. Then the corporations fill the vacuum with a “near” monopoly. In fact they have a team of lawyers who do nothing but review business policies and tactics to just barely keep them from crossing that legal line of be deemed a monopoly.
I like canning, freezing and making my own stuff.
When I see the prices of convenience foods, I can see why people are having a hard time making ends meet. HOWEVER, if they are used to spending a large part of their budget on stuff like that, they can save a lot by learning to cook from scratch.
The internet is replete with good recipes that are easy to make.
The phenomenon he describes is alive and real. I hear the conversations from the business owners.
I’ve heard too many versions of the following:
“Yes, my raw materials prices declined by 40% but I am not going to lower my prices. It’s been proven customers will pay the higher prices and I like these profits.”
Greedflation is real. The solution is less government regulation.
Define "blatant greed". What profit margin is permitted in your world?
“China is a large pork user. They have purchased several large producers. The demand for pork and hence price is much higher for pork. Also there is addition price pressure for pork with global supply falling.”
Yes, I absolutely agree there is some of that affecting certain markets. But not ALL markets to the level of 300% retail in the same country/state/and county it is produced. That is the price fixing and gouging bandwagon.
Exactly! Reading some of the commentary on this thread I have to wonder whether this is FR or DU.
“But blatant greed is well known to happen and while it may be legal, it isn’t right. “
Absolutely. Especially when it is forcing folks out of their homes. The few make a temporary killing while actually destroying their own consumer market in the end. It is bad business in the long run anyhow. They are shooting themselves in the foot.
It’s how Revolutions start. And I mean the real bloody kind.
One of the “business can do no wrong and is always right” cult I see.
Let me share a few recent practices I have caught from these businesses who can’t do anything wrong. Price gouging is nothing in comparison.
I have caught several grocery store’s computerized cash registers short changing. I have caught their registers double counting certain products even though it was scanned only once. And I have caught registers adding products to the item list even though they were never taken off the shelf and added to the cart.
The very real price gouging is nothing compared to these prosecutable criminal fraud practices. No, the greed is off the charts right now and there is no excusing any of it.
And let’s not forget the whole Epi-Pen price gouging for the simple reason that the person doing it was greedy.
Their claim was that raising the price 500% was necessary to make Epi-Pens more accessible to those who needed the life saving drug. Still trying to wrap my mind around that reasoning.......
One of the nanny state, hold my pee pee so I don't wet my pants cult I see.
If a business is gouging you, then don't do business with them. That's how a free market works. I'm willing to bet that the folks complaining about price gouging have no trouble gouging their employers all the time.
Both unanswerable questions because what kind of number do you put on it and what kind of lifestyle for the person profiting by it.
And I have not a doubt in the world that you well knew that when you asked.
It does not invalidate the recognition, though, that greed and price gouging to take advantage of people exists.
I think the most egregious example of this was the Epi-Pen debacle, when they just went and jacked the price 500% with the nonsense claim and somehow doing so make it MORE available to consumers.
If you want it, buy it. If the price is too high, then don't.
Much of the inflation came from a sike in prices during the covid mess and they found out just how much the traffic would bear. They aren't coming back down. Some are commodity driven and the commodities are up for the same reasons. sugar is one example.
Yeah, there is a lot of greed in these prices but it is a self-licking ice cream cone. Once it begins it all just snowballs.
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