Government determined to make ‘ten dollar stores’ an inexpensive brand
Give up the things of youth gracefully: 65 cents a gallon of gasoline, penny candy and Dollar Stores.
Yes, inflation is back.
And the worst is ignorance.
You know those. Talking heads on the small screen with seven-figure wages, politicians who never had to wonder if they should stop by Grocery Outlet to save $ 2.50 on five bags of salad mix before heading to Food-4-Less, and those who say we don’t pay enough taxes, but they have a small army of tax accountants on installments to make sure they can access all the loopholes that the Congress created for them to reduce their personal tax burden.
None of the ignorant – people who run things who never cared about whether a trip to Applebee with family in 2021 is reckless folly or a look at the drop in a week’s pay on $ 395 appetizers at the French laundry – not at all worried about inflation.
Why would they be? Those worth more than $ 500,000 in liquid assets with more wealth coming in each week don’t exactly count pennies.
To even imagine that they were genuinely concerned about government policies that seem to set the stage for high inflation, as the old-fashioned 101 economics once taught, would be overkill.
The actors and agitators behind what passes like good government these days are filled with ranks of people tripping over each other to spend $ 250,000 and more to take a ride to the edge of space with rockets. built by companies owned by Jeff Bezos, Elon Musk and Richard Branson.
Rest assured they don’t stumble upon the possibility of $ 5 a gallon of gasoline.
If the era of venture capitalists has taught us anything, it’s that today’s tech thief barons are no different from the oil and steel thief barons of the 19th century. They only become great philanthropists and humanitarians after ruthlessly destroying competition and putting legions of unemployed people on their way to the top.
Inflation is not a problem for them.
All of this helps explain why none of them eagerly watched the news that the Producer Price Index jumped a record 8.2% in August from the same month in 2020. The PPI is the price that producers receive for the goods and services they provide. It’s the proverbial canary in the mine to predict consumer price increases.
The impact of inflation is reflected in almost every item you see in a grocery store today compared to what you paid for a year ago.
This is why it is laughable to hear a talking head say that the latest billion dollar spending plan underway in Washington will not trigger inflation, and then add that “although I don’t do my shopping in grocery stores, I understand the price of things. go up.
Perhaps if Congress and the movers accompanying them were to feed a family of four with $ 150 a week off the shelves of a supermarket, they could have seen where their work took the country eight months ago.
As an example, what do they think is going to happen if they pour a trillion here and a trillion there into the economy all at once to rebuild roads. If there is already a shortage of construction workers that creates upward pressure on construction prices, what will happen if a trillion dollars is funneled to local governments to continue at the same time? large infrastructure projects?
The price of construction bids will skyrocket because there is too much money to chase after available capacity.
There is also an inconvenient truth about the large-scale government spending plan painted with broad ideological brushes and with no finished details before they are passed. The most recent example is the $ 13 billion that the state of California authorized to fraudulently distribute federal aid to large unemployment checks.
And let’s not forget the ineffective grandiose plans to keep tenants with a roof over their heads and entire landlords during pandemic closures. Eighteen months later, most of the money has yet to be distributed, creating another massive pothole for the economy to potentially bottom out.
Inflation hits those at the bottom of the economic ladder the most. Whatever gain a minimum wage of $ 15 may have achieved, it will be history in a few years if it has not already disappeared.
None of this is to say that government investment is unnecessary. The problem is, no one seems to believe in moderation or delayed gratification anymore. Dropping both disciplines simultaneously will make a trip to the supermarket more stressful than it was at the start of the pandemic.
Perhaps miraculously, a pandemic has created shortages in the supply chain, an avalanche of dollars chasing too few goods and widespread fraud made possible by the government in its worst state will not merge into a gigantic conflagration. economical and will not burn people.
If you’ve been browsing the aisles of a grocery store every week and see what Top Ramen is looking for now with a long list of food items that people rely on during downtimes, you’re going to see inflation as a major threat to you. your family and your ability to clothe, house and feed them.
Yet those who hold the proverbial key to the kingdom put inflation low on their list of concerns.
Instead, they are determined to invest even more money in the economy when there is a chronic labor shortage, offshore container ships that cannot be unloaded due to a shortage of manpower and new car dealers often selling their lot of vehicles before they hit the lot.
Since the folks at the dollar store might want to rename the ten dollar store.
In a few years, it might seem cheap to many buyers.
This column is the opinion of the editor, Dennis Wyatt, and does not necessarily represent the opinions of The Bulletin or 209 Multimedia. He can be contacted at [email protected]