Grocery Prices Have Soared. That’s Spoiling Biden’s Economic Pitch.
Category: News & Politics
Via: robert-in-ohio • 8 months ago • 73 commentsBy: Michael Sasso, Deena Shanker, Jaewon Kang and Michelle Jamrisko
The stock market is doing well.
Inflation is high, but not as high as it has been.
Gas Prices are going up, the real estate market is a bit unsteady again
Unemployment is down
But what about the cost of groceries, the cost of rent, the cost of day care, the cost of fuel for the car
S E E D E D C O N T E N T
President Joe Biden is regularly promoting signs of a strengthening economy and easing inflation, but when it comes to the indicator closest to home, it’s a tough sell.
The surge in grocery prices since just before the Covid lockdown has been stunning: up more than 25%, a full 5 percentage points more than consumer prices overall.
The president has tried channeling consumers’ ire toward food companies and grocery chains, accusing industry giants of abusing market power to raise profit margins at the expense of customers. And he’s tried commiserating, complaining about packaged food “shrinkflation” in a Super Bowl-timed Instagram video and again in his State of the Union address.
But Americans’ regular trips to the grocery store — three times a week for the average US household — are a powerful driver of economic discontent, constantly reminding consumers of the higher cost of feeding a family.
The outsized increase in the cost of food is hurting support for Biden, especially among crucial Democratic constituencies such as minority groups. Low-income and lower-middle class families are squeezed hardest because they spend a larger share of their income on food.
Kendra Cotton, executive director of the New Georgia Project, which seeks to register voters among marginalized groups, is hearing particularly from Black people about the cost of groceries and everyday expenses. Often, they blame the president, regardless of how much control he has, she said.
“You’ll hear a lot of commentary that government ‘hasn’t done jack for me,’” Cotton said.
...
Nationally, seven in 10 consumers say they are very or extremely concerned about the cost of groceries, more than any other spending category, including gasoline and rent or housing, according to a February poll by the grocery-industry trade group FMI. Forty-two percent said they were worried about having enough money to buy food in December, the last time FMI asked, compared to 26% at the March 2020 onset of the pandemic.
Try to stay on topic - discuss the topic without attacking each other and with as few histrionics as possible
Try to be civil with each other (I know it is hard for some)
Above all, I encourage you to read the entire article, before declaring it either garbage or gospel
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A great economy for Wall Street does not translate directly to a great economy for Main Street (or any other street in the United States for that matter.
There is a lot of cheap money for investors to use. It has little to do with most people.
From the article
"Omar Ceesay, a 44-year-old insurance claims adjuster and manager from an Atlanta suburb, said the $220 he used to lay out for groceries just a few years ago now only lasts a fraction as long. A 2020 Biden supporter who’s now undecided, he’s grown discouraged with the president over food prices and other economic challenges."
“For many households, the discretionary budget is what’s left over after paying for food, so the grocery store is the place where we tend to be most aware of inflation,” said Wells Fargo & Co. economist Tim Quinlan.
“We cannot readily point to anything that the Biden and Harris administration did directly that affects our bank account,” Ceesay said.
Plus gas has gone up more than 10% since January, so not only are groceries more expensive but it costs you more to go get them.
Also a factor considered by many citizens I am sure
And this 10% increase will raise food prices further, plus it now costs more to go to work, take vacations etc.
Everything costs more, I picked up groceries yesterday and it seems that some items are a few pennies more each time I go to the store.
oh look, conservative leaning independents complaining about the lasting market effects of near corporate monopolies, after america's world leading economic recovery from a catastrophic worldwide pandemic that was incompetently mismanaged here by previous leadership during it's first year. they should contact their legislators and urge the POTUS to issue EO's and set some price freezes in place for the affected consumers. I wonder who would complain about those price controls first?
oh wait, bad idea, this is an election year and interrupting or discouraging any dark money coming from those that benefit the most from a robber baron approach to the american consumer would be counter productive to party ideals. besides, nearly half of those affected will still vote for corruption and against themselves. gee, I guess an authoritarian dictatorship wouldn't be so bad after all if gas, milk, and eggs were just 99¢. never mind that little tax bump so we can afford another couple trillion in tax cuts for the "job creators", and don't forget to remind granny and grampa to get off their antique asses and find some jobs to make up the difference to cuts in their SS and medicare. /s
Oh look radical leftists who demand that everyone must be indoctrinated like they are or they are "Conservatives."
Where are your so-called independent thinkers?
so far, I'm the closest you're going to get to finding an independent thinker here...
Gone. Vanished. Vamoosed.
[Deleted]
That, is one of the most ridiculous comments I have ever read on NTers.
Absolutely ridiculous …..
I'm sure he meant as sarcasm.
Debatable
"corporate monopolies" , Exactly the issue, more corporate greed in play . There is no reason for any of their price gouging other than greed . No supply chain issues , no shortage of labor , no lack of cash flow . Just plain old greed .
The Groundwork Collaborative, a left-leaning think tank, finds your analysis as silly. They have reported that almost 30% of the rise in grocery prices has been driven by just five categories of food particularly vulnerable to supply chain shocks, including beef, chicken, fruits and vegetables and snacks.
Facts, shmacts!
The shouldn’t be allowed to get in the way of the greed narrative.
Prices are generally decided on by the amount of profit necessary to keep the doors open.
Factors include cost of goods, cost of services, labor costs, cost of insurance, costs of rent, taxes, and what the market will bear.
No, the prices of goods and services are determined by the market forces of supply and demand in a capitalist society.
[deleted]
In what way?
Where is your argument / explanation for your claim that prices are NOT determined by market forces of supply and demand in a capitalist society.
Assuming this is all you have:
This is an explanation from someone who has likely never managed a successful business. Go ahead and set your prices to achieve a desired profit and see what happens.
As a business owner, you must deal with the market. If the market price range (determined primarily by supply and demand) is too low for your costs then you have to find a way to cut costs while maintaining value. (Or find a way to trick consumers that your offerings are worth your price.)
Consumers generally do NOT simply pay whatever you ask, they pay what the market demands. If your prices (due to an inefficient operation) are higher than the going rate, you will be undercut by your competitors.
You will lose. You will go out of business.
I have ran successful businesses for well over 35 years.
I know what I know, and every single one was profitable and still in business to this day.
Saying the things I mentioned aren't considerations or germane displays incredible ignorance.
Only a complete idiot wouldn't consider the factors i mentioned.
No way on the planet that this is true if you did not set your prices to be competitive. Or are you going to claim that you ran a monopoly?
It is utter bullshit to claim that your business has the exquisite freedom to set prices based on costs without first abiding by the competitive market based on the economic forces of supply and demand.
You offer no argument, just denial of your ridiculous claim. So ... bullshit!
Your guess is all wet.
I did not say prices weren't competitive, that would be fucking stupid.
why not attempt to at least argue something I have actually claimed, not something you have invented ?
Then you should have not insulted JBB who stated that the prices of goods and services are determined by the market forces of supply and demand in a capitalist society.
That statement by JBB is a first principle of economics.
Every business owner must first abide by the competitive market. The price range established by the market is your sandbox.
Read 3.2.4.
Argue it.
Not interested in trying to defend things I haven't said.
And I didn't insult JBB, don't be ridiculous.
Conveniently for you, your insult has been moderated.
Explain how JBB is incorrect when he wrote:
read post 3.2.4
then we can discuss.
Most new businesses fail, including nearly all restaurants, precisely because they are not competitive. Price increases are regulated, controlled, by market forces. This is why the bigger, more efficient, more profitable businesses tend to succeed...
[deleted]
Imagine two identical cafes across the street from each other with everything the same except the owner of one takes out $50,000 per year and the other takes out $100,000 per year. How long can the second cafe pass along that extra expense before everyone notices and gives all their business to the first until the second goes broke? It is Econ 101...
Imagine would be all that is possible. No way 2 places will open up with identical menus and pricing next to each other. Good chance the rents would be different, too.
Here is a scenario:
Two local landscaping firms offer mulching. They get their mulch from the same local supplier so they have identical product. They both spread the mulch 2" high. The differences will be in service and price. Let's assume the service quality, etc. is indistinguishable for the average consumer.
One firm charges $80 yd3. The other charges $105 per yd3 to cover their higher labor costs (to keep the doors open). Over time, consumers will gravitate to the lower priced firm.
Both businesses must deal with their operating costs, established reputation, local regulations, etc. But first principles alone will force the $105 per yd3 firm to make changes or lose that aspect of their business to competitors.
Of course there are many other ways one business could be more competitive than another than the amount of profits removed from the business. Regardless, all things being generally equal within any given market price increases are only possible to the extent to which the market will tolerate The Law of Supply and Demand is first day content in all Economics classes everywhere...
Correct. It is wrong to question your understanding of business based on the fact that you correctly identified the market as the dominant framer for prices. (In the general case: barring monopolies and government intervention.)
This is EXACTLY what I was planning to write in a comment with about the same about of cynicism. These so-called, "republicans" will ask the citizens of this country to INVEST in the economic of a SCOUNDREL president with more minuses than plusses. Remember COVID 19! Remember its management highs and lows! Remember over one million citizens of both political parties killed in the name of fake freedom! Remember Trump left innocent people exposed to a pandemic virus scorching the country from one ocean to the other and one border to its touching border all because of so false sanctimonius notion that FREEDOM can win out over death itself traveling the country and taking the unguarded and the unmasked.
MAGAs tell lies about prices, such that whatever is shared by MAGAs can't be relied on to be truth! Moreover, they take away FREEDOM from others while bestowing all FREEDOMS on themselves. It's a sickness! Even dumbass Donald Trump is in on it. That bastard hides in plain sight that he wants to be FREE to do retributive harm - real mental and physical intimidation and violence to innocent people. . .and get away with it. And MAGAs 'bless his mess'!
Trumpism is a sickness. A damn sickness. It needs to go to hell right alongside Covid-19!
God help us if another PANDEMIC arises and MAGAs are in charge. Millions more will die (maybe this time - someone (else) we know and love.)
As usual around here - rather than actually discussing an issue - some choose to simply blame either the right or left when both parties are complicit in the crap governance that has brought the average American's economy to where it is.
Yet you blame President Biden for all these things - the economy, the border, everything so, as usual around here . . . . . .
The shoe fits
Tessylo
I blamed no one and had you read the article you would have noted that it mentioned that people were believing hat they believe regardless of the actual control or lack of control that the president/administration actually has.
But is reading the whole article that hard, I think not.
Wasn’t it Eleanor Roosevelt that over 100 years ago said something like, “great minds discuss ideas, average minds discuss events and small minds discuss people”? Seems still true today.
" Nancy Pelosi, or as I like to call her, Nancy"
Donlad Trump
He is only being nice.
Most people call her a dumbass.
I think this article discussed issues rather than people, but obviously some thin it is simply "us' vs "them" as they see every issue.
" Nancy Pelosi, or as I like to call her, Nancy"
Donlad Trump
And yet all you discuss it seems is the former president - so small minds you say, interesting
I agree.
Didn't take you long to make a mud pie did it ?
Dolly Parton has a good mud pie recipe.
Didn't take you long to make a mud pie did it ?
Take a smell, the stuff these folks are slinging is crap not mud
Everyone calm down, Biden told us that inflation is just temporary and we need to be patient.
/s
Everyone calm down, Biden told us that inflation is just temporary and we need to be patient. /s
And he would never mislead or misspeak
Why, no, never!
Sure didn't take folks long to side track any discussion of inflation as an election issue into a shit slinging slap fight
Oh well tomorrow is another day and another opportunity to get a discussion rather than a drunken bar brawl initiated
Groceries are high-priced in my city. My favorite store is a 'problem' that I have been dealing with for a while now. May be I will go in an ask Management how come nearly 'everything' is up in it. (this long after Covid-19). However, I know that a president can not order private industries to lower prices. . . but they do have a 'bully pulpit' to call out industry 'problem child/ren.'
It may be time for the citizenry to CONFRONT storeowners about profit over longevity and providing a community service! Or, we can make calls to city leaders, state leaders, and congress in hopes of stirring the pot to unsettled conditions under food and other foodstuffs suppliers.
Meh, people who have never had to successfully manage a business have no idea what it takes to do so. Like Joe Biden. Totally clueless in this regard ….
Your point seems to be "Nuh-uh." And, apparently you missed the affirmations that I have been dealing with high prices for a while now and not just rushing to 'conclusion' and complaining about pandemic shortages 'overtime.'
I gave a suggestion to this group about how to get some remedy or resolution, by pulling the shirt-tails of those with the local power and influence to get results. If that offends you enough to come back with "nuh-uh" that is your 'storeowner' problem to fix. Nobody owes small-businesses indefinite 'rip-offs' of their wallets, individually or collectively.
Finally, how I have been "dealing with high prices" is to buy less (go on a high-price 'diet' or sorts) of the over-priced goods and services until they come 'back' to their damn senses or treat my high-priced purchases as "gold" and use them with that consideration in the front of my mind.
Nah, my point is clearly and concisely stated above in 7.1.
What part don’t you understand? Be specific.
Be happy to educate.
And my point is rendered at 7.1.1. When you can talk to people and 'hear' them come back; otherwise stay gone. As it is right now it's boring and has a stench of desperation.
lol ….. Answer my question. You made the accusation. Now back it up. What part of my factual comment is confusing you?
Do you really believe that people who have never owned and run a business, can understand how to do so better than people who have done so?
Stop being so contrarian and answer the question. Be happy to set you straight on this but you have to participate and not just attempt to redirect or deflect.
First, I don't do MAGA questions. Secondly, I don't know that you own a pot to piss in at-known a business. As you seem to be here too often; this seems to be your 'day.' As to what I do or don't do. . . see "secondly" because my comments are all you will receive one way or the other. Finally, I see no "accusation" I made and certainly not anything that should have 'alerted' you to make an attempt at whatever you imagine you can expose. Perhaps, you could come clear about where you pulled that from-or not.
Lastly, I take exception to your trying to draw my personal life into this discussion anyway. It is no more any of your damn business whether or not I own a business or businesses or have ever owned one anymore than it is mine towards you respectively. I think you should be 'reprimanded' by the moderators on that account.
That comment speaks for itself.
Sad. Really sad.
We are done here …. Don’t know why I bother.
If you have nothing positive to offer, then give nothing.
CB
I agree that any change needs to start with citizens being involved and local government.
So long as people patronize stores and pay the prices on the shelves, there is no motivation or need for the store to lower prices.
Another effect (which we have seem around here) with huge public outcry against businesses (grocery stores included) result in those stores simply closing which does not help with affordable prices.
See 7.1.1.
In addition, I support stores. I see the problem/s for them and the public-pragmatically speaking. This can not go on 'forever.' Perhaps, starting a 'campaign' in the public about the issue has finally come up, because sometimes businesses, like people, need to hear from their customers as to where the line is drawn and being crossed over 'mightily'!
It is a form of 'snapping businessowners' out of their stupe.
Finally, I have been patient. . . like everybody else around me. But, as I explain in 7.1.1 I 'marvel' at the price of say . . . turkey bacon. . . which as a matter of principle. . . I won't overindulge in overbuying fully. . . (still do but treat the purchase as 'golden' and eat sparingly while enjoying every morsel). . .until the price drops back down from 4.99 to the 3.49 a pack that it was when I reasoned was 'fair.'
Additional to 7.1.1 I would like to explain that I am still wearing a mask (singular/not double anymore) when I go out in public through maybe this April (my doctor suggests). . . so you can discern from that simple disclosure that I am in no rush to condemn businesses for not yet getting clear on the supply shortages and company judgement calls which have to be made around the world on what constitutes price analyses.
But, patience can only get us so far. Eventually, wisdom and practical consideration dictate that I will have to come out of the mask and rejoin the rest of society in whatever may come. . . .
As it is now, the office of president holder, has made statements that the time is near or 'now' for grocery stores to dial it down and back on the price overruns and check that their profit level allows for people to 'eat' and survive the crisis that is receding. That is what spurs my mention that people should get vested in trying to help the president's 'bully' comments by asking their merchants themselves about the cost of goods sold! And, to lower whatsoever they can to ease inflation collectively. . . whether than just letting some conservatives use the issue as a repeat talking point in their daily political strategy/agenda.
C.B.
I admire your stance on principle
2.3% profit margin is a very low margin in the retail industry
That's interesting. And thank you for the 'presentation' for consideration. I pulled this out:
My local shopping stores are not doing any of that "empathetic to customers" pricing, rewards, or loyalty offers. Not even the 'messaging.' aspect. So we are left to wonder about the 'elites' sitting in the upstairs office/s and sending those pricing numbers down on foodstuff that we can actually see and experience the workers changing up and down (slightly) on a weekly basis.
Thank you all the same for an actual 'help' to understanding of the situation we are all facing. This is all any of us really want to do is understand who/what/when/where/how long.
With this understanding once again it 'kills' the narrative that the office of president needs to do something 'abrupt' to fix what apparently is broken as a consequence of the world being turned upside down since the pandemic struck!
Thank you for stating that. Incidentally, if my memory is serving me well right now, . . . this is a first! No one on Newstalkers has ever complimented me for standing on principle. If I a wrong I hope to be corrected by someone knowing. Carry-on Robert in Ohio! Maybe I will have an occasion to return a compliment to you. And when I do it will be genuine as well!
The Groundwork Collaborative, a left-leaning think tank, have reported that almost 30% of the rise in grocery prices has been driven by just five categories of food particularly vulnerable to supply chain shocks, including beef, chicken, fruits and vegetables and snacks.
Well, continuing "supply chain shocks" seems. . . a reasonable explanation. . . kills the article 'narrative' too.