I think another part of the reason for inflation is corporate concentration. Most industries are dominated by a few large companies so they have the power to raise prices at will and they are using the pandemic as an excuse. See the article below.
Holy smokes dude, you don't follow me on Twitter do you?
Robert Reich is my sworn mortal enemy.
What's deeply ironic about Mr. Reich is that we both agree corporate power is too concentrated, but his suggestion that Biden is trying to solve the problem is an Alice in Wonderland level fictional tale.
Let's examine, why is there so much concentration in retail?
Target and Amazon dominant thanks to pandemic era restrictions that bankrupted all the small and independent players that didn't have the resources to comply with onerous government regulations from Reich's friends like Mr. Newson and Mr. Biden.
It is unforgivable that Biden and Dems forced the closer of many small businesses during the lockdowns and continue to support or increase the enormous amount of legal red tape (COVID restrictions as an example) that a corporation like Chipotle can easily navigate, but a mom and pop restaurant can't.
Corporate concentration is a result of Reich and his friend's insane populist policies, and his post is just Stalinist propaganda that he knows very well is false.
No, I don't follow you on twitter, I'm not even on twitter so I had no idea what your opinion of Robert Reich was. I agree with you that Biden isn't doing much solve the problem. I also agree with you about how small business' got screwed during the pandemic and how that has only contributed to the problem of concentrated corporate power. However, I think the long term problem of corporate concentration really got jump started in the 80's with Reagan/Thatcher and continued on as nearly every administration on both sides of the aisle has failed to enforce anti-trust laws and make reasonable tax laws. Globalization only added to story as it made it easier for corps to avoid taxation. Anyways, I didn't mean to get political and I generally like to just talk stocks.
I like to avoid the political as well, but it's unfortunately more and more intertwined into the business world. Probably an outcome of and increasingly corporatized business world. Some of it is inevitable.
Corporation have huge advantages, access to capital markets and and resources is a huge one. We saw public companies take full advantage of it during the pandemic.
As for inflation, oil is now a big component of it. But I still think it's peaking and will normalize this summer. But, hey, it's just a guess. The Fed has more data and more computing power than any single hedge fund and even they don't know. The language in their testimony as concerning today. I think they will probably overshoot, as usual. Oh well.
I think another part of the reason for inflation is corporate concentration. Most industries are dominated by a few large companies so they have the power to raise prices at will and they are using the pandemic as an excuse. See the article below.
https://robertreich.substack.com/p/unvarnished-truth-inflation?r=8ny8q
Holy smokes dude, you don't follow me on Twitter do you?
Robert Reich is my sworn mortal enemy.
What's deeply ironic about Mr. Reich is that we both agree corporate power is too concentrated, but his suggestion that Biden is trying to solve the problem is an Alice in Wonderland level fictional tale.
Let's examine, why is there so much concentration in retail?
Target and Amazon dominant thanks to pandemic era restrictions that bankrupted all the small and independent players that didn't have the resources to comply with onerous government regulations from Reich's friends like Mr. Newson and Mr. Biden.
It is unforgivable that Biden and Dems forced the closer of many small businesses during the lockdowns and continue to support or increase the enormous amount of legal red tape (COVID restrictions as an example) that a corporation like Chipotle can easily navigate, but a mom and pop restaurant can't.
Corporate concentration is a result of Reich and his friend's insane populist policies, and his post is just Stalinist propaganda that he knows very well is false.
Thanks for commenting.
No, I don't follow you on twitter, I'm not even on twitter so I had no idea what your opinion of Robert Reich was. I agree with you that Biden isn't doing much solve the problem. I also agree with you about how small business' got screwed during the pandemic and how that has only contributed to the problem of concentrated corporate power. However, I think the long term problem of corporate concentration really got jump started in the 80's with Reagan/Thatcher and continued on as nearly every administration on both sides of the aisle has failed to enforce anti-trust laws and make reasonable tax laws. Globalization only added to story as it made it easier for corps to avoid taxation. Anyways, I didn't mean to get political and I generally like to just talk stocks.
Completely agree.
I like to avoid the political as well, but it's unfortunately more and more intertwined into the business world. Probably an outcome of and increasingly corporatized business world. Some of it is inevitable.
Corporation have huge advantages, access to capital markets and and resources is a huge one. We saw public companies take full advantage of it during the pandemic.
As for inflation, oil is now a big component of it. But I still think it's peaking and will normalize this summer. But, hey, it's just a guess. The Fed has more data and more computing power than any single hedge fund and even they don't know. The language in their testimony as concerning today. I think they will probably overshoot, as usual. Oh well.