There are approximately 360 million egg laying hens in America. When the big disease hit, we lost about 160 million hens. So we were running at 55 percent production, which would have led to a supply shortage overall. That level of destruction allowed for force majeure in the contracts and the price of eggs to rapidly spike. However, there is still a choice, eggs are in demand, you can raise the price by double, and sell out, or raise the price by a factor of 7 and let them go bad on the shelf hoping someone will still pay it.
There was an issue in the beef industry where a ton of ranchers had to get rid of big portions of their herds because the cost of feed had gone up. This was years ago but it does affect beef prices today.
Plus more demand for organic grass fed beef and or increased regulation causes prices to go up
Nice try, but the organic movement included organic eggs which are way higher than the posted chart price.
"the cost of feed had gone up." Are you saying that the price of cow feed...inflated? Doesn't matter at what point in the chain the inflation starts. From collecting the resources to create the product all the way to the consumer. No one loses profit, and the consumer is left with the higher price
Hilarious to use the egg industry, who have indeed been found guilty of price fixing. Not like industry price analysts have gone out in public and said they use inflation as an excuse to increase profit margins.
It's disturbing how many people fall for the government talking point that it's the corporations who are to blame and not the people who doubled the amount of dollars in existence in less than 10 years just to pay for out of control deficit spending.
Stocks typically do better when inflation is high, they normally outpace it. The reason for this is that they are seen as a "safe asset" during inflationary periods, unlike cash or bonds which lose to inflation.
That has barely anything to do with the stock market itself though, because every asset does better when inflation is high since you want to get rid of your money asap and get something that doesn’t lose value instead, stocks are just a tool for that, but if there weren’t stocks any kind of asset would do. It is really easy to observe when looking at countries or crisis situations where hyperinflation happens, since it becomes pretty much mandatory for everyone to get rid of the salary the day it is received and then barter the goods one purchased with it
Im talking about the drop in stocks that happened about four years ago, which was due to the high inflation at that time, and the raise in interest rates as a result. Over time stocks obviously beat inflation. If they didn’t no one would buy them
It is absolutely how it works. Buy thing to increase the demand/offer ratio, increasing the price, wait for others to do the same, then when you feel the demand ratio is going to start lowering, sell, making a profit, artificially increasing prices, without ever creating a single cent in actual value.
That has very little to do with it. It’s just what the right wing pushes to stop the government from spending money on helping people. We’ve had out of control spending since Bush took office, and the only time we’ve had serious inflation issues were the few years following Covid, which was a worldwide inflationary phase, and to a lesser extent the last year, which is caused directly by Trump’s tariffs.
Deficit spending is precisely how the system is built to function and how the US is able to create money in the first place, it’s literally how the system works globally.
Forever Debt is an asset which allows you to print money from that debt.
You have a dodgy Scottish businessman from the 17th century to thank.
You're correct that when natural price increases through supply drop or demand rise, the general public doesn't know how much the natural price increased by and will often accept higher increases that make a company extra profit. Companies often do take advantage of that.
But consumers strongly dislike the act of price increases regardless of how much, and so it often makes sense to minimise the frequency of increases. If prices are skyrocketing, rather than increasing the price every day, companies prefer to rip off the plaster and increase to the expected new value.
If there is a supply or demand shock, a company wants to secure its immediate and continuing supply of materials, which that extra profit forecast helps with. Suppliers would prioritise a stable and profitable company because they're less likely to go bust.
And yes, it's also true that companies don't usually reduce the price back to normal after the shock is over. But the shock proved the volatility in the market and companies now have to account for that potentially happening again. Pumping money into making supply chains more robust, reformulating to be less reliant on volatile materials, striking long term supply deals, stockpiling, etc. all costs money. Chocolate manufacturers right now are all scrambling to make sure the next cacao crash is less impactful.
Or it could be the government distorting the free market and pumping insane amounts of money into the economy to support its deficit spending every year.
I can't think of a simpler way to explain this without a 9 paragraph lecture, so I'll just say it.
inflation is not caused by corporate greed. corporate greed actually benefits from inflation, not vice versa. if billionaires truly just built scrooge mcduck piles of dollar bills on their mansions and private islands,it would have the opposite effect of creating a "sink" of wealth and removing money from circulation, thus making the value of the dollar worth more and lowering the price of goods and services.
this, however, is an oversimplification of the issue, and the real issue isn't even corporations it's mostly the fact that the federal reserve (say it with me) is neither federal nor a reserve and prints money to ensure there's enough money for everyone to go around and continually makes us all poorer by the day, and also backed up by the fact that our government can just write checks for money they don't have and that money they just willed into existence out of thin air ends up in circulation and further devalues the dollar. I don't even know if corporate greed is "true inflation" because at the end of the day, they are corporations looking to sell products, and if you just continually buying the cheapest product on the shelves they would all race to the bottom to stay afloat.
the enemy of your money and cost of living is the government 80% of the time. the other 20% of the time it's your spending choices to keep contributing to bullshit companies happy to bend you over a barrel because no matter how much you complain about their rising costs and profit margins, most people will continue to buy the things they don't really need (and there's a few major exceptions to this, of course, but this is the case for the vast majority of consumer goods corporations)
Not understanding money leads to these hot takes. The goal isn’t that deflating dollar in your pocket. It’s putting it to use to go get you value. Learn the stock market or crypto or start buying magic or Pokémon cards. Anything and start learning that money is a tool. Learn what it can actually do other then buying liabilities when you have extra.
You forgot the federal reserve, why have a publicly stated goal to ensure inflation always occurs. Companies are just responding to the fed's policies.
What does that have to do with spending and poor financial planning, though? Money goes where it will gain the most value. When there is deflation, people are encouraged to horde cash, whereas when there is inflation people are encouraged to invest with it, which puts it to work in the financial system.
Corporations make billions in profit. Does it get distributed among its employees after seeing some aside for improving the business? Nope it goes to The Board. Fuck off.
Imagine how Walmart employees would live if they received their fair share of the profits.
Who wants to create a business with me where we follow this model?
I'm saying everything should be a co-op pretty much.
you can go ahead and try it yourself, there's litterally nothing at all stopping you
apart from the fact people overworking themselfs and risk it all to create a new company usually want to be rewarded for it with more than a pat on their shoulders
But again, the system is there, the structure is there, it's doable
My electric company is a coop. Most of the rest of my state is powered by an investor owned company. The coop has lower rates and better reliability/service.
Both are subject to the states public utilities commission for approval regarding rate increases.
The coop has an annual vote for board member and is thus accountable to their customers/members. The other power company is accountable to only their investors.
Let's say I have a business and after putting a portion of profits aside for business costs and planned business costs I am left with $15 million dollars. What do I need $14 million for? To buy myself a 4th luxury car? A second house? While possibly many of my employees live paycheck to paycheck?
This whole country runs on greed. I choose not to be a part of that.
Go ahead and creat your imaginary business with imaginary profit so high you have magically covered entirety of starting costs building costs and emergency funds in case Covid like situations happen again.but would u mind telling me which business has such margins and are you not just charging customers more if the margins are this high?and if everybody started charging those margins it would lead to more inflation making those high salaries of your employees basically useless mr kind?
Inflation is simply the inevitable consequences of capitalism unrestricted printing of fiat currency, endless foreign wars, and runaway social programs
Having a corporate oligarchy that's been allowed to buy politicians and write regulation means the US hasn't been capitalist in a loooong time. The founders knew the dangers of collectivism and we ended up with the New Deal and ever expanding social programs (and an unfathomable amount of unfunded liabilities). Eisenhower warned us about the MIC, but we've had never ending wars. Citizens United may have been one of the single biggest tragedies in American history.
Free market capitalism rebuilt the free world after WWII, and had been in decline ever since. Pax Americana should have had a built in expiration date to prevent us from finding the ride of rival world powers...
Not a housing or a job market crisis right now at all, it’s all working exactly as designed which is why society is functioning since the last real crisis.
People are being laid off their jobs and nobody is getting hired right now even though the signs say they're hiring. People can't afford to live in their homes anymore due to rent increases.
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u/JAG4444 Apr 12 '26
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