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The article you linked to suggests otherwise: > However, food economists are skeptical an inquiry would uncover wrongdoing. > “I don’t think we’ve seen anythi
by tmoertel 4y ago
The article you linked to suggests otherwise:
> However, food economists are skeptical an inquiry would uncover wrongdoing.
> “I don’t think we’ve seen anything that makes us think that there’s something there other than normal economics happening right now,” said Amy Smith, vice president at Advanced Economic Solutions.
- GeekyBear 4y ago> “I don’t think we’ve seen anything that makes us think that there’s something there other than normal economics happening right now,” When profits are suddenly up 700% this claim no longer holds water. > High egg prices send profits at largest US producer soaring more than 700% https://www.cnn.com/2023/03/29/business/egg-profits-cal-maine/ https://www.cnn.com/2023/03/29/business/egg-profits-cal-main...
- lotsofpulp 4y agoYou need sustained higher profit margins to make that claim. In the short term, I expect profit margins to increase for goods experiencing supply / demand shocks due to market participants trying to figure out which way supply and demand curves are moving, and in shortage scenarios, buyers willing to pay more than necessary to secure the goods.
- GeekyBear 4y agoSorry, but a company that reports it has had zero avian flu outbreaks in it's facilities and still jacks up it's prices so high that profits increase by 700%... that's textbook price gouging.
- lotsofpulp 4y agoSo buyers willing and able to pay more for something should not have the ability to bid more to guarantee they can obtain it? Note that the buyers have options to consume other foods for their nutritional needs.
- GeekyBear 4y agoBuyers didn't have a choice, since suppliers that didn't have to cull their flocks chose to price gouge.
- lotsofpulp 4y agoThen who bought the eggs?
- fleventynine 4y agoThe alternative to price gouging is empty shelves with no option to buy at any price. The high prices work to incentivize competitors to enter the market and increase the supply. If only the government would stop letting competitors merge together...
- GeekyBear 4y ago> The alternative to price gouging is empty shelves with no option to buy at any price. No, the alternative to price gouging is to maintain a normal profit margin since your flocks didn't have to be culled and your costs have not gone up. If anything, the flocks that had to be culled would have caused a sudden chicken feed surplus and their feed cost should have fallen.
- lotsofpulp 4y agoCost of goods sold only sets a minimum price. If there are fewer eggs, then there are fewer eggs. The only thing left to discuss is who has the right to obtain them, and who will not. Usually, society accepts that people with more money get more access to things than people with less money.
- GeekyBear 4y ago> Cost of goods sold only sets a minimum price. Colluding to price gouge consumers when costs have not increased is illegal behavior.
- lotsofpulp 4y agoWho is colluding? And price increases in the US are not restricted to only when cost of goods sold increases. Any seller can change the price they want to sell at at any time, unless there is an emergency such as natural disaster where price gouging laws come into effect.
- fnordpiglet 4y agoThe issue being highlighted is that they suspect suppliers are colluding the drive prices higher. In a collusive monopoly the number of competitors artificially decreases.
- thfuran 4y agoIsn't price gouging where possible normal economics?
- fnordpiglet 4y agoA market research firm for suppliers doesn’t see issue with what their paying customers are doing? That’s not convincing, even if it provides a second opinion in a well balanced article. In the past most journalism showed perspectives from both sides, so all articles would suggest otherwise for the set of all things otherwise.