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Basic issue isn't excess of money. Basic issue is shortage in supply. Demand hasn't skyrocketed magically. The world over production levels were lowered to alm

by wg0 4y ago

Basic issue isn't excess of money. Basic issue is shortage in supply. Demand hasn't skyrocketed magically. The world over production levels were lowered to almost zero for couple of years. Interest rate hikes have wreaked a havoc of their own.

autoexec 4y ago
> Basic issue is shortage in supply. What's the supply issue that's impacting normal grocery store items? Is there a ship full of peanut butter ground beef and breakfast cereal stuck in a canal somewhere? Why would we have a shortage of things like cheese and pasta? For a short time there were real issues with things like toilet paper, but even that has been resolved (unless you're in the EU maybe). What's driving shortages now?
- andrekandre 4y ago
  > What's the supply issue that's impacting normal grocery store items? well, for eggs, just to take 1 example: bird flu * * https://www.nerdwallet.com/article/finance/why-are-eggs-so-expensive https://www.nerdwallet.com/article/finance/why-are-eggs-so-e...
  - autoexec 4y ago
    The largest egg producer in the country wasn't impacted by the bird flu at all, but they still jacked up their prices like crazy and pulled in a 718% increase in profit over last quarter because they thought people would bend over and accept it since they had that flu outbreak excuse. I'm not saying bird flu played zero role in the price increases seen in stores, many producers were legitimately impacted, but that doesn't mean that people, already suffering from high prices, weren't being taken advantage of at every opportunity because of simple avarice. "Cal-Maine Foods, the nation’s largest producer of eggs, reported this week that its revenues doubled and its profit surged by 718% in the last quarter as a nationwide egg shortage has sent prices soaring...Cal-Maine, which controls about 20% of the national egg market, reported a net income of $323.2 million, a seven-fold rise from the same quarter last year...The company has said that its egg production facilities have been spared the wrath of avian flu, the contagion that has forced farms to cull more than 58 million chickens and turkeys since the outbreak spread in early of last year." (https://nypost.com/2023/03/30/cal-maine-foods-profits-surge-718-amid-us-egg-shortage/ https://nypost.com/2023/03/30/cal-maine-foods-profits-surge-...)
refurb 4y ago
Why would a supply chain issue in a handful of products cause the price of all items to go up? That makes no sense.
- 2000UltraDeluxe 4y ago
  Handful of products? In Finland, at least, much of the grocery market is controlled by two dominant players that more or less control the entire supply chain for many products. Both have been profiteering like crazy lately, and for most people there's no option than their local supermarket.
  - refurb 4y ago
    Supply chain - the materials that go into producing a good or getting the finished good to market. There were no supply issues during covid with many, many products. Yet those prices went up too, even in a country with a high level of competition. Why?
    - 2000UltraDeluxe 4y ago
      It's not about disruptions in the supply chain, but rather about controlling it and using it to extract maximum value for the shareholders. Everyone wants their share and nobody will accept a smaller percentage than they did last week. Consumers are caught in the middle, with rapidly increasing costs of living as a result. We as in "society"), have assumed this would be solved by some healthy competition. It's just that we optimized society for maximum short-term gain rather than a market where newcomers are welcome. As a result, the players that are already in the game are free to ignore the forces society assumed would keep things running smoothly.
      - refurb 4y ago
        So wait, inflation isn't due to supply chain issues, but due to "extracting maximum value"? So why was inflation only a problem last year? Did shareholders not try and extract maximum value before that?
theshrike79 4y ago
The supply shock was the initial reason. Then corporations figured out that they could make huge bank and kept rising prices -> inflation.
- deleted 4y ago
  [deleted]

by wg0 4y ago

autoexec 4y ago

> Basic issue is shortage in supply. What's the supply issue that's impacting normal grocery store items? Is there a ship full of peanut butter ground beef and breakfast cereal stuck in a canal somewhere? Why would we have a shortage of things like cheese and pasta? For a short time there were real issues with things like toilet paper, but even that has been resolved (unless you're in the EU maybe). What's driving shortages now?

andrekandre 4y ago
> What's the supply issue that's impacting normal grocery store items? well, for eggs, just to take 1 example: bird flu * * https://www.nerdwallet.com/article/finance/why-are-eggs-so-expensive https://www.nerdwallet.com/article/finance/why-are-eggs-so-e...
- autoexec 4y ago
  The largest egg producer in the country wasn't impacted by the bird flu at all, but they still jacked up their prices like crazy and pulled in a 718% increase in profit over last quarter because they thought people would bend over and accept it since they had that flu outbreak excuse. I'm not saying bird flu played zero role in the price increases seen in stores, many producers were legitimately impacted, but that doesn't mean that people, already suffering from high prices, weren't being taken advantage of at every opportunity because of simple avarice. "Cal-Maine Foods, the nation’s largest producer of eggs, reported this week that its revenues doubled and its profit surged by 718% in the last quarter as a nationwide egg shortage has sent prices soaring...Cal-Maine, which controls about 20% of the national egg market, reported a net income of $323.2 million, a seven-fold rise from the same quarter last year...The company has said that its egg production facilities have been spared the wrath of avian flu, the contagion that has forced farms to cull more than 58 million chickens and turkeys since the outbreak spread in early of last year." (https://nypost.com/2023/03/30/cal-maine-foods-profits-surge-718-amid-us-egg-shortage/ https://nypost.com/2023/03/30/cal-maine-foods-profits-surge-...)

refurb 4y ago

Why would a supply chain issue in a handful of products cause the price of all items to go up? That makes no sense.

2000UltraDeluxe 4y ago
Handful of products? In Finland, at least, much of the grocery market is controlled by two dominant players that more or less control the entire supply chain for many products. Both have been profiteering like crazy lately, and for most people there's no option than their local supermarket.
- refurb 4y ago
  Supply chain - the materials that go into producing a good or getting the finished good to market. There were no supply issues during covid with many, many products. Yet those prices went up too, even in a country with a high level of competition. Why?
  - 2000UltraDeluxe 4y ago
    It's not about disruptions in the supply chain, but rather about controlling it and using it to extract maximum value for the shareholders. Everyone wants their share and nobody will accept a smaller percentage than they did last week. Consumers are caught in the middle, with rapidly increasing costs of living as a result. We as in "society"), have assumed this would be solved by some healthy competition. It's just that we optimized society for maximum short-term gain rather than a market where newcomers are welcome. As a result, the players that are already in the game are free to ignore the forces society assumed would keep things running smoothly.
    - refurb 4y ago
      So wait, inflation isn't due to supply chain issues, but due to "extracting maximum value"? So why was inflation only a problem last year? Did shareholders not try and extract maximum value before that?

theshrike79 4y ago

The supply shock was the initial reason. Then corporations figured out that they could make huge bank and kept rising prices -> inflation.

deleted 4y ago
[deleted]