Why Prices Might Never Go Back Down
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- เผยแพร่เมื่อ 22 พ.ค. 2024
- Historical data suggests the key factor in bringing down prices is a slowdown in consumer spending. Despite nearly half of Americans reporting feeling in a worse financial situation than five years ago, they’re still spending. Retail sales were up 2.1% year over year in the first quarter of this year and consumer spending jumped in February and March. Watch the video above to learn more about why prices will likely remain high.
Chapters:
0:00 Introduction
1:04 Why everything is more expensive
3:57 Statistics vs. experience
9:21 Why prices likely won't go down
Produced by: Charlotte Morabito
Edited by: Carlos Waters
Animation: Jason Reginato
Additional Camera: Zac Staffiere
Supervising Producer: Lindsey Jacobson
Additional Footage: Getty Images
Additional Sources: Bankrate, Bureau of Labor Statistics, Federal Reserve Bank of St. Louis, U.S. Census Bureau, Groundwork Collaborative
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Why Prices Might Never Go Back Down
Imagine living in a period of unspeakable wealth and yet having to worry about grocery bills. This economy is truly broken for us millennials
Biden broke it. It’s because Biden hates prosperity. He needs everyone broke to usher in that UBI.
He wants to put you in chains.
Nah not when you know the game you can get ahead
@@jlil2836yea sell out your morals like the rest nicely done
@@jlil2836 The thing about games is that one person wins and the rest lose. So it's kind of a stupid suggestion for everyone to "know the game," isn't it.
Have you tried not eating avocado toast?
"you know what? we make too much money...lets lower our prices" said no company ever.
Jeff Bezos said that once......then he woke up in a cold sweat from that nightmare. 😅😅
The greed happens at all levels. Corporations want to raise prices so they can continue to grow their business to earn more and increase their valuation and get rich. It is natural the price of products that we have to pay for will increase over time. Because of greed and how this world allows the greed to play the market to balance out. When there isn't enough demand, the price would go down to the very bottom it could be. But that rarely happens. When things start going chain bankrupcy the FED and government will panic and start printing more money again and lower interests. And the vicious cycle continues. In short, the inflation is part of the equation in how this world will continue to work. That's just how things are and will be
so buy stock if you want to be part of the winning side.
The lines have to go up bro
You'd think someone somewhere would say, "gee, if we reduce the price, we might sell more and therefore make more"
Maybe someday that guy will be born.
Good I need higher dividends. Quit living the life of a loser
the problem is that no matter how difficult things get, you have people who will defend corporations and billionaires to the end.
The average person has never been so poor. Millions of families are struggling financially as living expenses hit the highest levels in more than four decades. Over 60% of our country lives paycheck to paycheck and about 40% earns poverty wages. Even after working all their lives, more than a quarter of older people have no savings and many believe they will never be able to retire in dignity, while around 55% of elderly people try to survive on an income of less than 25,000 a year.
Biden is worst thing that happened to us
TRUMP 2024
I began my investment journey at the age of 38, primarily through hard work and dedication. Now at the age of 40, I am thrilled to share that my passive income exceeded $100k in a single year for the first time. This success reinforces the importance of the advicmonth e mentioned earlier. It is not about achieving quick wealth, but rather ensuring long-term financial prosperity.
Fantastic! Can you share more details?
She's known as Julia Hope Marble '. One of the finest portfolio managers in the field.
She's widely recognized; you should take a look at her work.
Coffee going from $4 to $10 is a rip-off. Quit giving companies an out to gouge you.
Why would anyone spend $4-$10 on a cup of coffee when you can spend $1 at an outside food vendor and even make coffee for free at home? Even Kevin O Leary said this from Sharktank about saving money from coffee
Drinking coffee is an energy rip-off as well
Boutique coffee is throwing your money away
This was my comment - it explains your complaint: THEY ARE AVOIDING A KEY FACTOR scarcity We are seeing localised shortages of foods around the world due to crop failures because of climate change.
Olive oil, coffee, chocolate are all under shortage at the moment. Grains are in short supply and as its an international commodity market - YOU in Am3ric4 might have a lot of grain - but the price is HIGH cos there is a GLOBAL shortage. THE ERA OF ABUNDANCE AND CHEEP FOOD IS OVER - GET USED TO IT...!!! My sister used to work for the world bank advising on this. ---->>>
Its going to get a LOT worse...!!!
Be happy you still HAVE coffee, it might not be a thing one day soon.
We need deflation if prices to go back down.
The actual problem is economists say inflation is coming down, meaning prices are no longer going up so fast. But they have already went up a ton by now and they aren't falling at all. So consumers are still suffering because prices aren't recovering even though "inflation is down". To consumers, that doesn't solve their problem, and the economic and political message is diconnected and sounds tone deaf.
Perfectly explained
Oh so that's why people shoplifting supermarket blatantly now
Good point. The inflation rate over the past months or year has stabilized but inflation rate is not the consumer price index. So the government is spinning the situation by saying how great the rate of inflation currently is and avoiding the uglier data points of the economy.
Meanwhile, CEO pay continues to grow out of control and political are protecting them by not talking about capping salaries or raising taxes on the upper upper tax brackets which needs to be done to pay off the massive debt.
At this point I feel like the USA only exists for the comfort of the upper class. I’m not a communist by any means but some regulation to stop the upper class from completely controlling our country should be enforced.
What are you even talking about, that's not a problem, that literally the definition, it's stated as "inflation going down" not "price going down" cause that will not happen unless you are a producer dealing with raw product.
The only people that are feeling okay are the minority of people who have gotten huge pay increases recently.
We're experiencing the glory days of practicing minimalism. I'm just opting out of consumerism except obviously groceries. I'm not shopping and getting price gouged, I'm not traveling and getting price gouged, I'm not playing their stupid game anymore. I'm spending less, saving more, and doing what's best for myself, and all the corporate shareholders out there can go to hell.
I'm feeling uneasy about this situation, particularly with the possibility of a depression rather than just a recession. I'm unsure about how to strategize with my $130,000 account considering the uncertainty surrounding the economic downturn.
Due to my demanding job, I lack the time to thoroughly assess my investments and analyze individual stocks. Consequently, for the past seven years, I have enlisted the services of a fiduciary who actively manages my portfolio to adapt to the current market conditions. This strategy has allowed me to navigate the financial landscape successfully, making informed decisions on when to buy and sell. So yes i think every investor should consider a similar approach.
You shameless stagers of advertising need to stop. It is sickening!
id like to spend my cash while it can still buy a sustainable independent life, off-grid, solar power, nice little efficient home with wood heat from my own trees and vegies from my own garden, eggs from my own chickens etc... :)
STOP IT
Passed McDonald's yesterday . Both Drive Thru's were packed . People love to complain while they're waiting in line just to get ripped off .
Facts
Brother, I am bankrupt. The rest of my money is given to you as I am. I hope you are in a good mood. This is my wallet🤧😭
👇🏻👇🏻👇🏻👇🏻
renew enforce kick denial digital replace silver fetch fantasy plastic acoustic later
Chemicals in the food sure helps lure them into the drive thrus no matter the price. That's the ultimate win these companies get.
I noticed it also
McDonald’s was never going to be empty 100% of the time. What you didn’t see was that McDonald’s going from operating at 85% maximum output down to 67% maximum output.
Thinking you can determine the health of a business from one momentary experience is foolish.
What you didn’t see was people going from ordering a Double Quarter Pounder meal with a milkshake for $18 and now they’re getting 2 McDoubles and a coke for $4
The average person does not assess the economy like an economist. They ask broad questions to derive sentiment like "can I afford a house?", "is my income allowing me to make meaningful gains against my expenses?" etc. Telling someone that inflation is slowing and therefore prices are rising at a slower rate isn't helpful when they're already very high. Telling people that the job market is strong isn't helpful when most of those jobs don't pay enough to compete with current prices. This isn't hard to understand.
35% of Americans agree with FJB.
Also adding in they like to say “We created this many jobs this year.”
Which is great and all but how many of those jobs are actually hiring? There seems to be quite a few jobs in the market but they remain vacant for awhile.
I bought a 4 bedroom 2 bath home here in New York that originally sold in 1956 for $16,100 dollars (I know because I have a copy of the original mortgage from the previous owner), adjusted for inflation $16,100 dollars in the year 1956 is about $183,000 dollars today. This means in order for someone to get the same deal as someone got in 1956 they would be able to buy a brand new home today for $183,000 dollars, but instead that home is going for $650,000 to 700,000 dollars. Things have become obscene, and soon 75% of the United States will be homeless if something isn't done right now.
Being in the IT biz I know several people who have applied to numerous job openings that eventually go unfilled. The company then lists them again a month later or so. Process repeats. "We couldn't find any qualified applicants so we need to let in more H1Bs."
Technically that's a job that was "created" but not for you and I.
Just one of many scams going on in the jobs market.
@@wysoft That's dirty.
Currently I'm just being smart and frugal with my money, I'm in the green 47% over the last 23 months and l've accumulated over $70K in pure profits from DCA’ing into stocks, ETFs, dividends and futures. However I’ve been in the red for a month now. I work hard for my money, so investing is making me a nervous sad wreck. I don’t know if I should sell everything, sit and just wait.
Stocks are pretty unstable at the moment, but if you do the right math, you should be just fine. Bloomberg and other finance media have been recording cases of folks gaining over 250k just in a matter of weeks/couple months, so I think there are a lot of wealth transfer in this downtime if you know where to look.
completely agree. I have been consistent with my profit regardless of the market conditions. I got into the market early in 2019 and the constant downtrends and losses discouraged me, so I sold off. I got back in December 2020 and this time with guidance from an investment adviser who was recommended by a colleague..
Is there any chance you could recommend who you work with? I've wanted to make this switch for a very long time now, but I've been very hesitant about. I'll appreciate any recommendation.
"Angela Lynn Schilling" is the licensed advisor I use. Just research the name. You’d find necessary details to work with to set up an appointment.!
I looked up her name online and found her page. I emailed and made an appointment to talk with her. Thanks for the tip"
is it really worth investing in stocks in 2024, I’ve been on the sidelines watching the market for awhile and it seems to be pretty stagnant to me not that it matters because I’m in it for the long run, but how can one generate actual profit in this current market?
It may be a good idea to speak with a financial advisor who can help you develop a portfolio based on your individual goals and risk tolerance.
Partnering with a financial advisor has transformed my approach to investing. Their expertise and personalized guidance have not only helped me navigate complex financial markets but also optimized my portfolio to achieve my long-term goals efficiently.
Your advisor seems competent. Could you share how I can reach out to them? I've recently sold some property and am interested in investing in stocks, and I'm seeking guidance.
Monica Shawn Marti is the licensed coach I use. Just research the name. You'd find necessary details to work with a correspondence to set up an appointment.
I looked up her name online and found her page. I emailed and made an appointment to talk with her. Thanks for the tip
Stop spending and eat at home. Let the economy sink.
That barely matters. Another report pointed out that the amount people spend on food has actually gone down even though prices on food are up. Which is to say, people are already eating at home. Lodging, insurance, health care, (stuff that is more difficult to cut back on or substitute) however, are up much more than the amount people are saving by eating less expensively.
you still would buy groceries.. lol
@@gotentk4 Which is cheaper than eating out for every meal. Stop trying to find excuses to eat your two cheeseburgers, large fry and apple pies.
you still need to buy grocery.
We as individuals can only do so much when the government is artificially propping up the economy ensuring record wealth accumulation and profits for themselves, their rich donors and the corporations.
These people are living on another planet... things are totally unaffordable and out of control
It's bad when EVERY SINGLE GROCERY ITEM you buy has went up 50%
Greed
And somehow inflation only went up 3%, it's like they telling you the sky is green when everybody can see it's blue, and they tell you there is problem with you for thinking the sky is blue.
@@arg888 youre just poor
This is wild. “They’ll go up before they go down” so people have to suffer ENOUGH. We haven’t struggled enough for my billionaires and millionaires
Prices basically never go back down unless we're in a literal economic depression. What bugs me more is how cooked the official CPI is compared to how expensive the prices increases actually were - so our tax brackets don't get to properly adjust.
They don't wanna pay social security
Exactly. But remember in May of 2020 when people were complaining we weren’t printing and handing out enough money?
It's nothing but GREEDflation by the corporations who control every major industry by oligopoly. A few corporations control a huge percentage of every market who conspire with each other through back channels or behind closed doors. It's all about corporate profits...the wealthy want more power so they can obtain even more power to control the politicians who will write the tax laws so that they pay even less in taxes. SHEER GREED... nothing more, nothing less.
price cannot go back down, that is just impossible,, even during a depression, there will be more money printing to sustain price. During the gold standard era, prices could have gone down during the depression.
@MrAlb3rtazzo
They'll have crazy discounts like right after covid
Everything was buy 1 get 1
I just recently turned 54. It's crazy to think that I remember a time when the US was a great place to live.
The Dimentia Tyrant has really made things substantially worse over the last 3 years.
It's not just happening here in the US. It's happening all over the world.
You remember the times before Obamanation.
It's always been the opposite of "haute cousin", dude! 💰
Crime high, living price is high. The root cause is the Dems who ruin the country
Blaming the war in Ukraine and ignoring the Feds endless spending is so laughable….
Thank you!
I guess we all should just stop spending money. Stop giving in to the high prices. When demand is less than the supply, prices will come down. Basic economics.
Consumerism in America is out of control.
The price increases from 2021 and 2022 that made everything prohibitively expensive are here to stay. The "good news," the economists say, is that those same prices will continue to grow even more out of hand, but at a slightly slower rate. And then those same economists scratch their heads and ponder why it is the public isn't celebrating lower inflation. The most tone deaf, out of touch profession imaginable
And in absolute terms the prices are going up just as fast.
10% inflation on $100 item or 5% inflation on the same item that now cost $200
Either way you're paying $10 more than the year before and if your wage isn't going up, it hurts just as bad or worse.
@@TheLeafyo The people keep voting for it though. They see a $1000 tax cut as a good thing when some multi-millionaire gets a $1m tax cut in the ame bill which drives down the value of money and they're poorer than before the tax cuts overall. Money is a zero-sum game so the more in the economy the less it's value.
@@TheLeafyo Yup. The government is just lying to us and trying to trick us into believing that things are getting better. What else is new.
These "economists" most have not been through past recessions and dont realize when the middle classes, low, mid and upper hold the majority of buying power makes for a strong economy, when they dont because costs are too high, that is a major contributor to recessions. A stable stock market is not a sign of a good economy by any means, 1929 and 1989 showed that.
They're paid to be out of touch, because the people they're "supposed" to be making happy are already rich.
The experts told people it's transitory and to this day the people are still waiting for it to be over.
How many years has it been. Transitory was a lie.
The "experts"
I always knew Jerome Powell was full of it
@@Jonathan-bf2cmJanet Yellen the Treasury Secretary said that
Inflation going down is transitory, it's going way higher.
In order to buy a house i need my income to increase 50%, not 4%
Get married
Never in history was it 4% lolol
Greedflation, not inflation. You think corporations are going to give up their record profits out of the goodness of their hearts? Corporate greed can't be fixed with higher interest rates.
It's not corporate greed. Corporations are going to do what's best for the shareholders.
"...that inflation is coming down yet they don't notice any of their prices coming down"
That's because as long as inflation is a positive value, it has in fact not "Come down", it's just a decrease in the rate where things will get more expensive.
The fact that so few people realize this shows just how much of a failure our public education system is.
*Update*
The people posting their replies give me hope that people are seeing through the facade and more people realize what is going on than I had previously thought.
Thanks all.
It's government math. When they say they are cutting the budget they are just decreasing the projected increase that the budget was supposed to have
Even worse. If we were to somehow get into a deflationary environment, which the fed will never let happen, the house of debt laden cards that our government has propped itself upon will collapse like nothing the world has seen since Zimbabwe. It would destroy the global economy.
People failed calc and do not understand that inflation is the first derivative of prices.
Precisely. Inflation slowing down is not the same as deflation. Prices might not increase as much as in the worst period of inflation, but they will keep high and not back to the same level they were years ago.
people just need to compare pre-covid wage to food price / gas price to right now. simple as that. as long as the price level is not down or the wage is not rise enough, the cost of living is still inflated.
Monopoly is the reason. There's no affordable options left. They own everything
Let's create then. It takes one outsider to scrumble a monopoly. Will it be you?
A huge contributing factor that is ignored here is that we imposed tariffs on the most competitive suppliers of affordable goods (aka China) to protect local manufacturers that aren't competitive at all...
nope its the insane money printing
@@8000_k you don't understand economics at all. Prices going up before COVID before stimulus.
No competition... prices go up
@@brandonchristopher9657 I don't think you understand economics. Prices did go up before COVID but it was less than 2%. The FED targets 2% inflation.
There is lots of competition. Please give one example of a company that has a monopoly and I will show you how the government created that monopoly.
Prices never go down. Corporations know consumers get used to a price and leave it.
She says "it can feel like your in a hamster wheel" 😂 We are in a hamster wheel
It’s inevitable that a recession is the only way to “reset” prices
We are in a recession
@@donnelljunior4198 Good. We'll see those prices going down soon enough then.
You say this but a recession would only make it worse because the fed always saves everybody and prints more money, only a true recession where companies are allowed to fail and die would fix this
Prices aren't going down. This is the new normal, get used to it.
@@Marcus-id5ur stop smoking crack
I doubt prices will come down. The line has been set now. For a business, they see customers will pay $2 for a widget that normally costs $1. There is no incentive for that business to sell that widget for $1 again. Businesses will never take the loss; it is always passed on to the customer, with increased profits going to shareholders/owners.
Yup
Yes but so what. Employees do the exact same thing. The $17 minimum wage job at McDonald's will never go back down to $10. Every employee expects more now.
Spiral down the drain ... rat race😅
This buy now pay later trend as been inabling all this greed. Before that when a business raised it´s prices and business go down they lower it, nowaday you can even pay a cup of coffee on installment, that's why they are selling it to you at 10$.
@@agisler87 evbery employee *needs* more now. minimum wage workers can't let the wage drop further or they will start starving.
I was just at my local Publix and walked by the fish section. They were selling Red Snapper fillets for $45 dollars a pound. A week ago at Whole Foods I saw whole red snapper for $14.99 a pound. Folks they are just making this up and compensating for what they perceive to have lost over the pandemic. The secret is just as she said. Have a plan when you go to the grocery store. And buy that which is on sale.
She goes- "Companies have pricing power"
And We The People have the Spending Power where we just don't buy the stuff.
We have the Power and the Money that These companies need to survive. Remember That.
I remember coke and Pepsi bragging several quarters back about having pricing power even after the price had raised drastically for their 2L soda locally that my family hardly purchased. Now they are starting to speak different since many more people quit paying their higher prices every other week going higher. The funny thing is that these CEO are 4-7 months late to adjust bc they will keep stretching their increases until the breaking point of where people will not spend the price for their goods. Then a lot of their consumers have realized that don't need to rely on that product any longer so once the company lowers prices back down, the long standing consumers still won't purchase bc they realized don't need the product
Yeah just stop buying gas, grocs, telecom, housing etc. yeah sure bud go ahead & just stop. Lemme know how that goes.
I cant believe there were people out there who actually thought prices would ever come back down. These companies now know you'll pay higher prices, so why would they ever lower them?
Chipotle, domino's and Texas road house didn't raise prices and they increased their business while others fell
Nobody talks about inflation hitting a negative rate…
These companies have higher costs as well, especially for labor. I doubt any employees are going to take a lower wage.
This is why we need more competition in the market and prices will fall.
@@ca60453 Competition isn't the problem here.
These economists you're interviewing who are perplexed by the The average person's opinion on inflation seem to not realize that wages are not growing to meet
The other issue is that the economists only look at average wages in aggregate. "Wage growth" is typically increased wages to new hires and EXTREMELY high paid professions in a demand crunch (e.g. AI related jobs recently) - which pushes the average higher. This is a problem because while "average wages are increasing," for most people, that does NOT mean that their companies are increasing wages for current employees. People are still, for the most part, receiving the same modest cost-of-living increases they always got, with new people often being hired at the wages of people with years of experience. So, on aggregate, while "average wages are up," the average person isn't seeing a wage increase.
These are then the same economists scratching their head at "the great resignation" and "the great reshuffle." People are forced to get new jobs to enjoy those "wage increases." Part of the problem is people with a Ph. D. tend to be hyper focused on a very narrow subject, so they constantly miss the forest for the trees.
What goes up in prices in food, restaurants, clothes…, never comes down.
its theft the rob the poor struggling
The simple one-sentence answer to the question is that CPI doesn't go minus, meaning we're not in deflation, i.e. the price won't go down, though the CPI may drop.
let me get this straight, my grocery bills are u 30 to 40%, my fuel bills are uo 30-50% , my electric rates are up 100% my rent has gone up 25% , all this over the past 2 yrs alone, but somhow the govt seems to believe that inflation is only up 3.5%. someone help me make sense of this
It's an average across country. Poorer towns/ city will drop the average down much lower.
You're not supposed to notice! We gotta make sure youcrane is taken care of. FJB.
Like the video says core inflation which is what they look at conveniently doesn't look at those things.
Because they are lying to us.
@@mackenziegray2090 It's also a point that the 'inflation' number looks at industrial things, not just consumer things. If it was just consumer price index, as the video points out, the numbers don't look _nearly_ so nice.
My house insurance went up $100 a MONTH. That is ridiculous. And when I asked why they said the cost of materials is up. BS
Cost of materials up but quality of materials is down. Isnt that crazy?
A couple years ago my home insurance went up 500 a year. Went through Costco and got new home insurance, with better coverage, for less than the old cost. It pays to shop around.
@@JamesD837c hmmm, I haven’t tried cotsco yet
Cost of doing business is way up. Lots of businesses are going to go bankrupt. It's rare for a business to last 100 years.
" Prices have not come down." --they never will--at best rate of increase will slow--If you voted for Biden / Harris, you voted for this.
If Prices won't go down, then income will have to increase. That's just how things have to be.
I work for one of the largest grocery stores in the US behind Amazon. I asked for an extra 200$ per month raise, during the conversation the general manager mentioned how he was determined to staff this location and by golly he did it (in his words), and the week before we were on par to do 3.2 million but ended up doing 3.7 million that week. So I work at a grocery store that makes 3.7 million a week and they refuse to give me an extra 200$ a month, in a location that has had staffing issues for the past 3 years straight................ Okay time to find a new job.
3.7 mil in profits?
Is that revenue or profit? If it’s revenue, it’s no wonder he did not give you a raise lol
Grocery stores are usually low-margin businesses. Management might not want to give every employee a $200/month raise.
Big Grocery Store chains do not tend to give raises upon request. This is common sense, now if it was a mom and pop grocery store then there might be some wiggle room for it.
If the Grocery store chain you work for is behind Amazon, then the raise wouldn't even be up to your GM, it would be up to people way above their level. If you get a raise, everyone in that company gets a raise. That's how it works with Big Chains
Majority of pandemic stimulus went to corporations, not the American people
Which they used to buy up assets such as housing, hence massive increases in house prices and rent. Rent which will be used to purchase more housing further hollowing out the middle class.
What people don't see is their wages are actually decreasing in real terms. Wages may be going up yet purchasing power is decreasing due to the combination of the value of money decreases and inflation.
If you print too much money currency is worth less, is not that goods went so much up as the value of our money went down, welcome to Venezuela.
I saw an abundance of people taking vacations and purchasing new cars with the stimulus money.
We should lower the demand, then prices will start coming down eventually. Avoid impulse purchasing and postpone any high value purchase to a future date and most importantly don't get too excited by social media posts and ads. Also have good self control over your budget, spending habits etc. Live a simple and minimal life, never become a spendthrift even under high peer pressure ok.😎😎😎
"Food Content Creator" - what a time to be alive!
People have to start voting with their wallets. As much as people gripe about Mcdonalds between $15 for a meal now, the drive-thrus always look busy around me. Folks were paying over MSRP for a ton of cars during Covid too, for instance. Companies are testing the waters on how far they can push us and its not looking great.
It's kinda working, McDonald's announced a 5 dollar meal, so at least they are listening
It’s the profit-price spiral fueling inflation.
Absolutely! Stop buying over priced products! The market economy is set by consumers accepting or not accepting prices.
Big Mac meal near me is now $18.70. And the drive thru is still packed, corporate is "lovin it".
The food there is disgusting too
Nothing but price gouging and constant money printing
Hyper inflation and raising min wage (like CA) has nothing to do with it.
Capitalism in its natural form.
@piku5637 thr line has to rise... NO MATTER WHAT
Corporate concentration and fewer choices. No wage increases. Red states don’t want wage increases. Very few labor protections.
I wish it were price gouging. Fuel costs 2x as much under this president which affects the price of everything.
Maybe just maybe the problem is wages. Either wages need to see a period of drastic increases or we see a period of deflation. 4% average is ridiculous when companies are seeing growth in the 10-20% range year over year
As a business owner it’s been extremely hard to offer value for our customers and be able to be profitable. We haven’t raised prices in 2 years and am worried we won’t make it trying to be fair. People still complain about prices no matter how much we try to keep them low.
Greed. The reason is greed. After all, line must go up.
Everyone is greedy. Blaming greed is a lazy answer that lacks any nuance.
@@agisler87 Shareholders’ perpetual demand for growth quarter after quarter regardless of market conditions is irrational and unsustainable and drives the incessant enshittification of literally everything as costs and corners are constantly cut to ensure the line goes up.
Yeah it's all greed, the 2 years where the gov told people not to work and handed out money didn't have anything to do with it.
Don't you invest ?
@@OptimumSlinky it's not irrational to demand your investment makes a return. What shareholders demand is not what they always get. You have a very flawed understanding of how a business grows and how markets work.
Crazy how it still falls on the consumer to pinch pennies while they’re no solutions to address corporate greed and price gouging
Corporate greed isn't a problem. Price gouging is nothing more than a political term used by people to whine about prices. The consumers are just as greedy by wanting to pay less.
@agisler87 are you lot actual astroturfers? Whay kind of actual human says corporate greed isn't a problem? 90% of the world's problems can be traced back to corporations. From warmongers and gunpushers to oil and gas companies literally destroying the planet, to pharma companies holding ill people hostage so they can make money hand over fist.
@@agisler87 corporate greed is absolutely a problem when they buy off the government so they dont break up monopolies and even go so far as to abuse regulatory agencies to prevent new companies from emerging to compete in the market. Capitalism doesnt work when you dont have a free market environment that allows for competition to continually drive down prices. Thats why the system is broken.
Corporate greed is just what politicians say to deflect the blame.
The issue is the enormous amount of government spending since 2020 without a matching increase in productivity. Whenever this happens, you get inflation.
The best way to describe inflation is like a fire that burns through a forest. The fire broke out, raged out of control, and burned the forest down. Now it’s slowing because naturally the fire has run out of forest to burn (its fuel) and then it just goes back to existing as an ember. The damage is done though. Inflation cools but it never really stops. Just ask your grandparents. They probably used to pay a nickel for a gallon of gas.
Who needs to ask a grandparent? I can remember when gas was a buck and some change a gallon, and occasionally you'd get a deal or promotion that'd get it below a dollar.
Sales are actually FALLING, INFLATION on almost 4% is the direct contributor to a "sale increase" on 2,8%, so people are BUYING LESS and not MORE like your commentator stated!
Greedy corporations!
Sure buddy. The colossal government spending and the FED printing money endlessly have no consequences at all
NWO
Capitalism and the state.
Corporates must be “greedy” to maximize the benefits for their shareholders. Never blame corporates! Blame government for excessive spending!!
@@visitante-pc5zclmao who do you think the government obeys to? Maybe the corporations who fund it?
Companies also have a lot of say in their pricing when America basically only has four companies 😢
As a procurement person since 2020 I was nurtured in this contexes for basically my entire working life.
In the business side we are negotiating using raw material indexes and energy indexes, showing price reductions and being able to achieve supply price reduction.
Then you look at your private life and still see the energy bill price bein super high or grogery store prices not coming down
The grocery store is the worst. They need to lower food prices.
Inflation is NOT going down, the RATE of inflation's increase is going down.
Still headed in a bad direction, just the rate in which we're getting there has slowed slightly.
Not even the rate itself, but the rate at which the rate was increasing has slowed.
@@tanujguha8462 the second derivative
Its like comparing bad and worse
That's literally what that means. Inflation and inflation rate mean the exact same thing. lol 😂
@JasonEdokpa no its not
Ahhh but Aldi can do it. Everyone else just excuses why they can't. Won't even dare rework a part of their business such as marketing to reduce the costs and pass savings to customers. But Aldi can.
That just means that Aldi can raise their prices on other items instead. A nickel increase here, a dime increase there. They'll make their money back on those price cuts.
Love Aldi. My go-to grocery store
Aldi isn’t that cheap. Like compared to Walmart it’s on par with their budget brand. It’s best for produce prices but even then it’s gone up the last few years.
@@ninjagirl226 sure, but the quality in my experience has been better for the price than Walmart.
@@ninjagirl226 also depends on location, the one near me has much lower prices than the one smack dab in the middle of a big city
I'm about to lose my home. I cannot keep up with the Mortgage payements. This is ridiclous.
It is what it is. What we are at as pricing goes, I do recall was what Europe was in the 2000’s so everything inflates and there’s no two ways around it.
Great episode!!!
Do people not realize you cannot say "just spend more time meal planning/cooking/storing/shopping" to combat this problem, that requires more time and work. Theoretically, if people could do more work to solve this problem could they not just work more to get more money? Like if I spend an hour reducing my food budget by like 6 dollars and my wage is 16 dollars an hour isn't that stupid of me? It's actually kind of like I lost 10 dollars, not saved 6 dollars, it's the opportunity cost that is not worked in to the equation.
Only need 5 minutes for food budget.
You are right this is why millionaires pay to have their food premade. Because 1-2 hours of their time is worth more than meal prepping. Most poor people don’t think this way
Who in the hell is willing to pay $10 for a coffee or $10 for a dozen eggs? I'd rather adjust my consumption patterns, but most Americans would rather not change their consumption and just complain instead
The American way
Eggs near us are going for $11.50. Prices soon going to be a dollar per egg.
you're good for the system, we like the type that'll just "pull themselves up" by their "boot straps" or some such 👍
@@rickyayy $2.00 a dozen here in middle America!
If you're gonna increase your spending, prices will have to go up@@jaep2495
Regarding the price of eggs: The egg industry raised those prices deliberately and it was all over the news. From CNBC: "Egg prices rose 60% in 2022. One farm group claims it's a 'collusive scheme." Anyone can read about it. Put the blame where it belongs. Price gouging is the real problem here.
Imagine if all consumers rallied together and didn’t spend a dime for 2 weeks. I bet that would wake em up.
“Money illusion” lol. Most industries haven’t seen their salaries go up. It’s only because they essentially doubled the pay for minimum wage jobs that they’re able to claim the economy is doing great because wages are up. Me personally working in finance in the tech industry I’ve seen my salary go down by 30k since 2020 thanks to layoffs.
Prices almost never come down (deflation) it is just the rate at which they are going up that has slowed. Though not to 2018/19 levels.
prices went down in japan, between 1990 and 2019 prices were flat or went down in housing.
Prices are coming down in China, which the US government would have you believe is the worst possible thing.
The same US government then sent Yellen to China to cry about overcapacity.
One way to stop inflation is for the government to stop giving and printing money to every other country and not investing in our infrastructure.
Inflation coming down is not deflation, it just means the prices aren't rising as fast as they once were. If you think corporations are going to lower their bottom line numbers, so consumers can struggle less, you're sadly mistaken. They're going to milk the consumer for all they're worth until the consumer fights back and goes elsewhere, forcing them to change how they do business.
My car insurance was 70 a month in 2022, 150 a month in 2023 and now 220 a month in 2024. Maybe next year 300 a month.
My went down from 100€ to 80€ :)
Car insurance is astronomical now.
Might? they never will. Since the 90s greed has taken over the corporate world. It used to be that mass production brought down the cost of things. Now corporations just pocket it. When they raise prices due to cost they do not ever lower them when their costs go back down. We need some strict laws about price gouging it has become a real problem.
That's not even the problem though. The value of your money has decreased. Put it this way, before covid US federal debt was about $23T, it's now $34T, that's $11T more money in the economy which is over $80k for every American adult. If you don't have $80k more in cash or assets then someone else does (hint: millionaire's, billionaire's and corporations got it all). There's a relatively fixed amount of resources that money can buy so the value of every dollar in the economy is less. People like to claim that there's nothing wrong with billionaire's existing, yet all that money merely existing devalues money making everyone else poorer.
@@kronos6460 that is what happens when prices keep rising over decades but wages stay the same. The debt while irresponsible is not the problem.
@@SamuraiG Why do you think prices keep rising and wages stagnate? Just saying it happens does not explain the cause, and if you don't understand the cause you can never even attempt to fix it (this is why they deliberately dumb down education).
@@kronos6460 I think it because I have lived it, I was in my late teens in the 80s so I know what I am talking about. Education is a whole nother can of worms. How I was educated and how kids are now is completely different and that is thanks to republicans deliberately dumbing down education every chance they get.
I thought inflation has been fueled by excessive government spending. If US “feederal” government is borrowing from banks to cover about half of all spending, then the excess printed money causes everyone’s money to lose value.
Many in these comments are saying inflation is caused by corporate greed.
I think that might be some of the cause, but I believe that excess spending by our “feederal” government is main cause of inflation.
I don’t think we can print and borrow ourselves out of this hole.
I can be wrong. Further study may be required for all of us to have a better understanding of problems we all face
When Congress drops a five thousand page bill on Friday night, to be voted on Monday….has anyone done a full accounting of monetary and social implications of the bill? Probably not
Prices never go down. A decrease in inflation doesn't imply decreasing prices, it just means that increases are slowing. Decreasing prices is deflation, and that is a nightmare we have not seen since the 1930s.
5:30 "The reason why people get so angry when they go to a coffee shop that,you know, a cup of coffee used to cost $4 now costs $10" There are people who are justifiably angry because they are making $10 or less an hour
prices never go down, they even out. for instance, milk rise to $6 during peak inflation, but as inflation levels out, milk will stay at $6 or increase by 10 cents for a year or two, and everything in terms of wages has to catch up
What milk are you drinking? Milk is less than $4 in Cali.
what about japan?
Where the hell do you live that milk is $6 per gallon? I live in a fairly expensive area and I'm only paying $2.30 for a gallon of milk.
Milk is like $2
$12.20 tax included.. that’s how much it cost me for 1 large curly fry and a medium shake at Jack in the Box. I hadn’t eaten fast food in well over a year up until that point.. a bag full of potatoes and 1 gallon of ice cream would be slightly less at the grocery store… done with fast food.
Use the app
The last fast food I had was a few months ago. It cost me almost $17 at Chick Fil-A for a spicy chicken sandwich meal that came with a soup and a small lemonade. I was done after that.
McDouble and small fry $3.00 or a McChicken and small fry for $2.50. Small drink $1.00 you are being played.
@@cleverusernamecl5532 You can still get 1 dollar small drink? Damn lucky you. It's a buck and some change here at any of hte fast food places. (Dirty trick: get your food to go, get your drink from the local convience store, the fountain there is half the price or less for the same amount.)
@@cleverusernamecl5532you're being played. Not long ago mcdoubles were a buck
I was told to spread my money across different things like stocks and bonds to protect my $750k retirement savings. Now, with the markets being shaky, should I keep adding money to my portfolio or consider other options?
Bitcoin, but dollar cost average over time....
It also doesn’t help Newsom raised min wage to $20 an hour in CA. This will raise the prices of eating out quite a bit and not to mention all the restaurants that closed down because they couldn’t afford $20.
It will never come down. Prices in 70 never came down either
The fed was never trying to get prices to come down, they were only trying to get them to not go up as fast. I think a lot of people misunderstood what they meant by “bringing inflation down”
double talk
True. And they are still failing at their stated goal, in this regard.
In DC studios are $1500, the only thing that is partially affordable. Everything above a one bedroom is $2400-$6000 in rent. Almost every house on the block are $700,000-$3,000,000. The city & park service cleared out all of the homeless encampments, also most people are working more than one job and over 40 hours a week to survive. It feels like everybody in the city is on survival mode.🥴
When inflation goes down, prices don’t go down, prices just go up at a lower rate.
Did anyone believe they'd ever go back down? That's got to be the height of ignorance. Greed won't allow that to happen, and greed is running amok.
it seems to me, historical data suggests, prices have never come down, the dollar has never gone up, it's a natural product of the fractional reserve system
Where I live food prices either drifted down slowly or trailed inflation for many years prior to the pandemic. Food absolutely became more affordable, and quality gradually rose too. (And no, I didn't just have a rising income.)
That went double for most other consumer goods, thanks to productivity gains in the Far East, as well as perhaps a stronger dollar.
I think inflation on this side of the Pacific over that period was all in accommodation costs. And cars.
@@dixonpinfold2582 that's great! i wish that was the case here. food prices have roughly doubled since pre-pandemic times, we do have social programs to feed the poor, but they struggle to keep up with the demand
to sum up this video in one sentence . Prices are high and they are going to stay high until we all quit buying so much stuff.
Anyone who has ever adulted before knows that prices almost never ever go back down...
Stagflation is right around the corner people. Wages won't keep up with inflation and haven't been for the last few decades. We might have to find the American dream outside of the country
I am already packing my bags to leave, navigating the foreign work visa process is a huge pain. I have a feeling the immigration office will be more annoying then the DMV. Yes, I have traveled around the world and their are countries 100X better then the US from a quality of life perspective. On the flip side there are places infinitely worse then the US as well. I would rate the US as being Mid high tier 20 years ago and now Mid tier on a trajectory to be Mid low tier in 20 more years. So a sinking ship.
Here’s an idea - stop eating out.
It’s not affecting me at all. I knew this was coming. That’s why I bought multiple Bitcoins in 2012 and have and was able to retired in my 30s!!! I also invested 7 figures in silver and gold!!! Everything was planned including the CIA attack on 9/11…installation of Obama and his 16 year plan to destroy America…also the 2020 stolen election…the PLANdemic and the Bioweapon jabs that followed…the Ukraine money laundering scam…and sooooooo much more.
Right because everyone has a ton of fridge space and time to eat healthy groceries before they perish- be reasonable
I am already underweight if I didn’t eat out on occasion I would be in trouble. I have a fast metabolism and my cooking skills are bad.
Some people don't know how to cook.
@@BLAZEJOEboningJORGEc you’re acting like groceries perish within seconds. You also don’t need a ton of fridge space.
I left home in 1971. Within 2 years the Arab Oil Embargo occurred and inflation hit the roof. Prices sky rocketed. Rent, home prices, food, you name it. At its peak, inflation hit 16%. Interest rates followed, dropping only one point every 2 years for the next 30 years. At peak inflation, a $30,000 home jumped to $100,000 overnight ... then just kept going. For the past 13 years inflation has been almost non existent. But now it's back. People think (or hope) that when inflation slows down or stops, prices will drop back to where they were. They won't. They'll remain at the new levels. The only way prices will come down is if the public stops buying. But if they keep buying at the same rate they always have, prices will stay at the new higher levels.
There are ways to shop smartly and save a ton of money. It just takes more work than it used to. For instance 5 dozen eggs at Costco is a lot cheaper than buying one dozen at Safeway and they last a long time. Download the apps, clip the digital coupons, let the sales determine what you buy that week, shop multiple stores.
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+144
Netter title: “Why prices never go down.l
We unfortunately live in an anti-consumer economy.....
If a cup of coffee is $10 it’s not “like” you’re getting ripped off…you ARE getting ripped off.
Gotta love the gaslighting 😂
Keep printing $ , sending it abroad and this is what happens.
Socialists keep telling me that printing money has no effect on prices.
More like it’s spent on corporations serving terminal life services to retirees.
So when Denmark use more money ind the usa too help Ukraine % off the economy and lower lower inflation and have even tax payer healfcare police and school .. perhaps find a better exues for you tax politic don't working 😉
Denmark is not the same size as the US, and the economy is smaller.
Try mot to come up with excuses to fit your narrative.
To whom is croatia sending money? Guess what everything tripled in price
I'm a little perplexed that most Americans doesn't understand the definition of inflation and the definition of price.
Answer: Corporations are making record profits off of price gouging you, but you keep buying their products anyway...so why bother lowering the prices?
You print $2 trillions of dollars as stimulus monies and you expect no consequences?
You didn’t withdraw the entire amount.
Argentina here we come .
most of that cash went to corporations and propping up the stock market, making the Billoinaires VERY happy for the FREE gov guaranteed mulah. Meanwhile, our politiks penny pinched and grudgingly shared something for we-the-people. Meanwhile, 800B in PPP loans were forgiven, without even an hour of debate.
@@Timekeeper20239 Wrong. $1 trillion in PPP funding went to employees. $300 billion in advance child tax credits, and THREE separate rounds of direct checks to families - $4.5 trillion. The problem is that the poor / dumb don't buy assets, they used the extra money to buy stuff or junk.
My uncle raised chickens for 10 years, among other homesteading types of lifestyle things, and stopped right before covid hit. lmfaoo. Fresh chicken eggs are so delicious and full and good. It makes you wonder wtf happens to eggs by the time they get to the supermarket. It's like it isn't even the same food sometimes. All I know is an older lady told me the less power the labor unions have, the more price gouging and lack of wages keeping up, and fkery that will exist in the economy, and she was right, because you look at the stuff done to the middle class representatives over time, and it's almost directly proportional to the state of lower and middle class economics. whatever.
prices only go down when you have competition. when the same big corporations own everything and collude to price fix and the government doesnt break up monopolies prices will never go down.
Persons are shopping because the government is in the pockets of corporations and forced the workers back to office. Forcing purchases of clothing, vehicles, shoes, attire, hair appointments, nails maintenance, child care etc. All on credit