You’re not giving capitalism enough credit. Corporations and businesses are not altruistic. If they can get away with slowly raising prices to increase profit margins, they will.
That’s a hell of a lot easier to actually achieve when you don’t have foreign produce acting as competition and consequently sanity-checking domestic prices. Foreign suppliers implicitly set a ceiling for how much a product can cost since the market would shift to using them if they became the cheaper option.
To make matters worse, tariffs are a very nice excuse for retailers to raise prices across the board using the excuse that “it costs us more to get it, so it has to cost you more to buy it.” If we’re lucky, they’ll raise foreign goods by the exact amount they’re paying more for them and only choose to raise domestic good prices (for profit) by only some fraction of that amount.
For basic stuff like rice the US produces way more than it needs, the only real imports I see are for specialty stuff like jasmine rice or bhasmati rice from Thailand or India. Basic long grain rice or calrose is domestic and very cheap.
It’s literally how capitalism works, so yes. They don’t care if it’s “mean.” They will ALWAYS price things as high as they can, and they will push it as far as they possibly can before sales start to dip.
If it’s a publicly traded company, they will literally oust you as CEO if you aren’t doing this because you’d be leaving money on the table.
The dollar is internal and farmers make annual purchases so they will have already bought their stuff they need for this season so they shouldn’t be too affected by exchange rates. The US makes its own oil and derivatives like fertilizer and farm equipment so they shouldn’t be too affected for now.
There is more supply than needed, we normally make so much we export huge quantities. How does restricted food exports increase prices domestically?
The comments about capitalism and price gouging and stuff are all fine and correct. But that would logically apply whether the exports were restricted or not. But they have to do something with all the food they were going to export or not. Sometimes they’ll just burn it or dump milk but they can probably sell, just at a lower price or pay more to ship it farther away. Now long term yes if these farmers go out of business then prices could increase if the supply shrinks but that doesn’t really apply to this year.
The problem with the reasoning I see here is that you lot are taking things you heard and applying them to this situation, but you just say capitalism and that’s the end of your argument. Supply and demand still affect prices, especially on a large scale and with commodity goods.
Domestically produced food shouldn’t go up that much.
If your competition cost more then you can raise your prices too!
Most food in the US is domestically produced, so no. The US is a huge exporter of food outside of specialty goods and tropical things.
You’re not giving capitalism enough credit. Corporations and businesses are not altruistic. If they can get away with slowly raising prices to increase profit margins, they will.
That’s a hell of a lot easier to actually achieve when you don’t have foreign produce acting as competition and consequently sanity-checking domestic prices. Foreign suppliers implicitly set a ceiling for how much a product can cost since the market would shift to using them if they became the cheaper option.
To make matters worse, tariffs are a very nice excuse for retailers to raise prices across the board using the excuse that “it costs us more to get it, so it has to cost you more to buy it.” If we’re lucky, they’ll raise foreign goods by the exact amount they’re paying more for them and only choose to raise domestic good prices (for profit) by only some fraction of that amount.
For basic stuff like rice the US produces way more than it needs, the only real imports I see are for specialty stuff like jasmine rice or bhasmati rice from Thailand or India. Basic long grain rice or calrose is domestic and very cheap.
It’s literally how capitalism works, so yes. They don’t care if it’s “mean.” They will ALWAYS price things as high as they can, and they will push it as far as they possibly can before sales start to dip.
If it’s a publicly traded company, they will literally oust you as CEO if you aren’t doing this because you’d be leaving money on the table.
If the value of money goes down, prices go up.
The dollar is internal and farmers make annual purchases so they will have already bought their stuff they need for this season so they shouldn’t be too affected by exchange rates. The US makes its own oil and derivatives like fertilizer and farm equipment so they shouldn’t be too affected for now.
What does this even mean? You think the US has complete control over what the dollar is worth? Because that’s utter nonsense.
It will anyway, prices never really went back down after covid for a reason
Either a bot or: Tell me you played sportsball in a small town highschool without telling me you played sportsball in a small town in highschool!
Whoever let gave you a passing grade in economics only did it so you could ahoot the game winning 3 point score.
There is more supply than needed, we normally make so much we export huge quantities. How does restricted food exports increase prices domestically?
The comments about capitalism and price gouging and stuff are all fine and correct. But that would logically apply whether the exports were restricted or not. But they have to do something with all the food they were going to export or not. Sometimes they’ll just burn it or dump milk but they can probably sell, just at a lower price or pay more to ship it farther away. Now long term yes if these farmers go out of business then prices could increase if the supply shrinks but that doesn’t really apply to this year.
The problem with the reasoning I see here is that you lot are taking things you heard and applying them to this situation, but you just say capitalism and that’s the end of your argument. Supply and demand still affect prices, especially on a large scale and with commodity goods.