Should we limit price increases?

Other discussions not related to the Permanent Portfolio

Moderator: Global Moderator

Post Reply
SomeDude
Executive Member
Executive Member
Posts: 1080
Joined: Sun Nov 22, 2020 1:45 am

Re: Should we limit price increases?

Post by SomeDude » Tue Oct 05, 2021 10:16 am

tomfoolery wrote:
Tue Oct 05, 2021 9:14 am
Inflation is at a healthy number a small bit above 2% which is a good thing because it was unhealthily below 2% for many years so this averages it out to the 2% goal.

The problem is everything I buy is going up way more than inflation. Rent is up 20%. Food is up 15%. Gas is up 15%. Health insurance is up 10%. Shipping rates have gone up a few times this year all above 10% each time. All of my expenses have gone up way more than inflation.

How can this be allowed to happen? Shouldn’t we demand big businesses stick to only raising prices by the actual inflation rate? Why don’t anti-price gouging laws cover this? It’s rightly illegal to raise the price of gasoline during a hurricane. How can it be legal to keep raising prices on things over 10% when inflation is only a little bit over 2%?
The government inflation numbers must be false if all prices are going up by more than the numbers. Maybe a better method would be for the government to take a basket of products that represent the average household expenditures and measure the price changes YoY. The % change could then be labeled something like "The Consumer price index".
SomeDude
Executive Member
Executive Member
Posts: 1080
Joined: Sun Nov 22, 2020 1:45 am

Re: Should we limit price increases?

Post by SomeDude » Tue Oct 05, 2021 10:17 am

tomfoolery wrote:
Tue Oct 05, 2021 9:14 am
Inflation is at a healthy number a small bit above 2% which is a good thing because it was unhealthily below 2% for many years so this averages it out to the 2% goal.

The problem is everything I buy is going up way more than inflation. Rent is up 20%. Food is up 15%. Gas is up 15%. Health insurance is up 10%. Shipping rates have gone up a few times this year all above 10% each time. All of my expenses have gone up way more than inflation.

How can this be allowed to happen? Shouldn’t we demand big businesses stick to only raising prices by the actual inflation rate? Why don’t anti-price gouging laws cover this? It’s rightly illegal to raise the price of gasoline during a hurricane. How can it be legal to keep raising prices on things over 10% when inflation is only a little bit over 2%?
Don't forget that this "little bit over 2%" is also transitory.
User avatar
jalanlong
Executive Member
Executive Member
Posts: 829
Joined: Mon Jul 01, 2019 7:30 am

Re: Should we limit price increases?

Post by jalanlong » Tue Oct 05, 2021 10:37 am

tomfoolery wrote:
Tue Oct 05, 2021 9:14 am
Inflation is at a healthy number a small bit above 2% which is a good thing because it was unhealthily below 2% for many years so this averages it out to the 2% goal.

The problem is everything I buy is going up way more than inflation. Rent is up 20%. Food is up 15%. Gas is up 15%. Health insurance is up 10%. Shipping rates have gone up a few times this year all above 10% each time. All of my expenses have gone up way more than inflation.

How can this be allowed to happen? Shouldn’t we demand big businesses stick to only raising prices by the actual inflation rate? Why don’t anti-price gouging laws cover this? It’s rightly illegal to raise the price of gasoline during a hurricane. How can it be legal to keep raising prices on things over 10% when inflation is only a little bit over 2%?
I mean we can tell them when they can open, when they cannot open, how many people they can have inside and what they have to wear while they are inside. That would require a lot of people checking to make sure the rules are being followed by each and every business. Or we would need an app for people to report on businesses that are not following the rules and charging their fair share.

A better solution is to put more money in people's hands so they can afford these higher prices caused by greedy business. Maybe a universal basic income of some sort. If business can play that game, so can we.
VMHarrito
Junior Member
Junior Member
Posts: 1
Joined: Wed Oct 13, 2021 2:54 am
Contact:

Re: Should we limit price increases?

Post by VMHarrito » Wed Oct 13, 2021 3:21 am

Entrepreneurs are greedy, they will pass on the price increase layer by layer, and eventually let everyone pay
User avatar
vnatale
Executive Member
Executive Member
Posts: 9423
Joined: Fri Apr 12, 2019 8:56 pm
Location: Massachusetts
Contact:

Re: Should we limit price increases?

Post by vnatale » Wed Oct 13, 2021 8:30 am

VMHarrito wrote:
Wed Oct 13, 2021 3:21 am

Entrepreneurs are greedy, they will pass on the price increase layer by layer, and eventually let everyone pay


They can only pass on price increases to the extent that:

1) Their competitors also pass on the same price increases
2) The market is willing to pay the increased prices
Above provided by: Vinny, who always says: "I only regret that I have but one lap to give to my cats." AND "I'm a more-is-more person."
Post Reply