Greedflation- Update #2
I wrote a blog post about Bob Casey’s campaign trying to paint businesses as greedy. The premise is that companies’ increasing prices for products more than inflation and/or cutting product size is greedy and causing high prices for consumers.
Kamal Harris adopted Casey’s corporate greed idea in her campaign to explain the increase in grocery prices. Let’s blame it on greedy businesses.
The problem is, that’s not true. Steve Ballmer, the former Microsoft head and current basketball team owner, started a website, USA FACTS. It contains facts and figures about our economy, crime, education, health and other topics. Of course, figures can lie and liars can figure. I believe Ballmer is giving us an honest count.
The site says that grocery prices increased only 1.3% from September 2023 to September 2024. The real big increase came between 2021 and 2022, when grocery prices increased 11%, the largest increase in 40 years. Items that increased the most were:
Eggs 85%, Beef 11%, Chicken 4.1%
Items that increased less than inflation or decreased were:
Milk 1.4%, Potatoes -3.6%, Cheese -2%, Bananas -0.2%
What were the reasons that food prices increased?
- Supply chain challenges including those related to Covid and to global relations such as the Ukraine/Russia war
- Inflation
- Higher Labor and Transportation costs
- Animal disease such as Avian flu, impacting egg and chicken prices
- Extreme weather events which damage crops and harm livestock
The public didn’t buy the blame game from Casey and Harris.
It’s going to take more than just blaming greedy corporations to bring down the cost of groceries.
_________________________________
TABASFUNDING provides funds in the form of loans from $50,000 to $750,000 to entrepreneurs who want to expand or acquire businesses. We will look at other business situations which require capital, effort, management, and patience. It will take a while to find out who the winners are in the current environment. If you think you have one, and need funding, please contact me directly at 610-896-2400 or Lee@TABASFUNDING.com.
_________________________________
LEE TABAS is available as a Director, Trustee, and Consultant. With 30+ years of business, entrepreneurship and banking experience, Lee can be helpful with ideas, policies and second opinions. Available for short-term or permanent assignments. Please call 610-896-2400 or email Lee@TABASFUNDING.com for further information.