Core Inflation Rate Highest Since 1981

[85SugarVol]

Well no sh!t. Those workers in China get fired (or worse) for not working.

 

[K-town Vol Fan]

 

[allvol123]

Does he understand these are all voluntary transactions?

 

[Orangeburst]

Does he understand these are all voluntary transactions?

The Bern is using the "burrito" inflationary index.

 

[VolStrom]

Need to edit the title @VolStrom highest since 1982 now

Done

 

[Rasputin_Vol]

Its not price gouging. But it's just bad optics.

 

[DC_Vol]

I’m not entirely disagreeing with his premise, but the measure he should reference is margin rate if he wants to make an argument about inflation. There are a lot of ways to increase your profits 181%, including accounting gimmicks and one timers.

If their margin rate on a like unit basis went up, then most likely they are passing through their inflation and then some. That’s because if you pass through dollar for dollar increases, you’ll have natural margin rate compression.

 

[utvolpj]

Well no sh!t. Those workers in China get fired (or worse) for not working.

We're still less efficient and much is on purpose. We have some of the slowest in the world. Unions fight automation, more work hours, wages, etc. A guy making $250k in the US driving a crane has zero incentive to speed up and the unions will never ask him to

 

[85SugarVol]

We're still less efficient and much is on purpose. We have some of the slowest in the world. Unions fight automation, more work hours, wages, etc. A guy making $250k in the US driving a crane has zero incentive to speed up and the unions will never ask him to

Oh totally agree. Been working in global supply chain for 20 years now.

Pretty stark contrast to China

 

[85SugarVol]

We're still less efficient and much is on purpose. We have some of the slowest in the world. Unions fight automation, more work hours, wages, etc. A guy making $250k in the US driving a crane has zero incentive to speed up and the unions will never ask him to

I did see where Rotterdam increased port efficiency in 2021.

Maybe we can swap out the Chinese for the Dutch.

 

[Rasputin_Vol]

I did see where Rotterdam increased port efficiency in 2021.

Maybe we can swap out the Chinese for the Dutch.

We'll have to give them Manhattan back in exchange.

 

[volfanhill]

That 50 cents works out to almost $60 million dollars. The need to grow profits is rooted in the need to increase share holder value. The majority of these companies largest shareholders are institutional investors. For example, the largest stock holder of my company, is a north western states teachers union. This means when you shat on companies growing profits, for their share holders, you are really shatting on peoples retirement funds.

 

[BreatheUT]

That 50 cents works out to almost $60 million dollars. The need to grow profits is rooted in the need to increase share holder value. The majority of these companies largest shareholders are institutional investors. For example, the largest stock holder of my company, is a north western states teachers union. This means when you shat on companies growing profits, for their share holders, you are really shatting on peoples retirement funds.

And people only invest in these stock index funds if the incentize is in place for the risks - higher returns.

The risk free rate of return is about 5%. Anything less then that you may as well invest in bonds. No risk then put the money in savings and have it insured by the FDIC. No risk and basically no return.

$38M still is laughable but it's all value and competition. A bad CEO can crush the business.

Why don't Sanders ask Nancy how she got super rich or how did Sanders, a career idiot, get several expensive homes?

 

[DC_Vol]

And people only invest in these stock index funds if the incentize is in place for the risks - higher returns.

The risk free rate of return is about 5%. Anything less then that you may as well invest in bonds. No risk then put the money in savings and have it insured by the FDIC. No risk and basically no return.

$38M still is laughable but it's all value and competition. A bad CEO can crush the business.

Why don't Sanders ask Nancy how she got super rich or how did Sanders, a career idiot, get several expensive homes?

Right now money in savings accounts are losing value. Not even beating Biden’s inflation.

 

[volfanhill]

And people only invest in these stock index funds if the incentize is in place for the risks - higher returns.

The risk free rate of return is about 5%. Anything less then that you may as well invest in bonds. No risk then put the money in savings and have it insured by the FDIC. No risk and basically no return.

$38M still is laughable but it's all value and competition. A bad CEO can crush the business.

Why don't Sanders ask Nancy how she got super rich or how did Sanders, a career idiot, get several expensive homes?

His salary is just north of a $1 million. The rest was bonuses and incentives. Probably cashed out a ton of stock, and obviously, they grossly outperformed expectations to fatten his bonus.

 

[AM64]

We're still less efficient and much is on purpose. We have some of the slowest in the world. Unions fight automation, more work hours, wages, etc. A guy making $250k in the US driving a crane has zero incentive to speed up and the unions will never ask him to

I generally don't agree with much about unions and how they go about protecting jobs; productivity is the key, and they generally seem to find ways to limit that. However, the one issue nobody should be ignoring is jobs and the effect of automation and offshoring. It comes down to two key things. You either "provide" jobs and pay people so they can support themselves, or you tax everybody else and provide welfare ... that's more or less socialism. The other issue is that without workers and adequate income, companies have a limited market for goods and services. Start displacing workers and that initiates a downward spiral because fewer sales leads turns into a smaller workforce - as you lose workers you lose consumers and you see smaller markets - or skyrocketing taxes to provide welfare. Employment opportunity isn't an either/or kind of thing; it has to happen - can't be relatively menial service jobs either.

 

[Vol8188]

This is always the funniest take ever. The left wing idea that inflation is just all the companies deciding to be greedy at once.

Mixed in with the idea that profits are somehow evil.

If this is what’s going on, why did all the corporations become magically more greedy this year?

 

[K-town Vol Fan]

This is always the funniest take ever. The left wing idea that inflation is just all the companies deciding to be greedy at once.

Mixed in with the idea that profits are somehow evil.

If this is what’s going on, why did all the corporations become magically more greedy this year?

Because they know that consumers know "everything is going up." What a great time to price gouge.

 

[Vol8188]

Because they know that consumers know "everything is going up." What a great time to price gouge.

Lol price gouging is always another hilarious term.
Here’s the thing you’re missing, how did they nearly triple profits without tripling the price of their product?

You’re not claiming they had a nearly 200% price increase. Just that their profits increased by that much. So how were they able to “price gouge” as you call it and still sell a lot more food than they did a year ago?

 

[DC_Vol]

Because they know that consumers know "everything is going up." What a great time to price gouge.

While I wouldn’t use the term gouging, this is a true statement. Everyone is trying to pass through price increases in this environment, and it’s not always dollar for dollar. Producers are taking advantage while they can. I cannot say with certainty that is specifically the case with Chipotle, but it wouldn’t surprise me.

What Bernie gets wrong is he thinks it’s a problem for the government to fix, primarily by punishing “greedy” corporations with a higher tax rate.

However, the example he uses to demonstrate what he thinks is corporate greed makes his stance on corporate tax rates invalid. If they are managing to pass through all their inflation and then some, does he think a higher tax rate won’t also get passed on to the consumer? It always does.

 

[Vol8188]

While I wouldn’t use the term gouging, this is a true statement. Everyone is trying to pass through price increases in this environment, and it’s not always dollar for dollar. Producers are taking advantage while they can. I cannot say with certainty that is specifically the case with Chipotle, but it wouldn’t surprise me.

What Bernie gets wrong is he thinks it’s a problem for the government to fix, primarily by punishing “greedy” corporations with a higher tax rate.

However, the example he uses to demonstrate what he thinks is corporate greed makes his stance on corporate tax rates invalid. If they are managing to pass through all their inflation and then some, does he think a higher tax rate won’t also get passed on to the consumer? It always does.

There’s two important things here as I see it.

1. Bernie intentionally misleads people into believing their “profits” (which he uses as a pejorative) were due to “price gouging” without addressing the simple reality that their prices have not tripled or even doubled for that matter. So he’s obviously misrepresenting how they made an extra 181% if prices likely rose 10% (idk their exact menu price changes).

2. The obvious answer here is they sold more product. The obvious question is how and it’s the one Bernie doesn’t want you to ask because he knows the answer you’ll come up with is that Bernie and friends killed about 50% of the restaurant industry with their policies

He knows his audience is dumb enough to just see the words “profit”, “price gouging”, and a ceo getting a raise and be triggered without asking “how”

Edit: to be fair I overshot the 50% number and it’s more like 10-15%

 

[sonofUT62]

"Joe is crushing it," eh?

Blaming Joe Biden for the current rise of inflation, is either being intellectually dishonest, as many Republicans in Congress are, or it is being ignorant of the fiscal calendar. I could see it being either one of those with you. I have seen dishonesty, partisanship and ignorance on full display in equal share from your posts.

Once again... obviously, the Biden administration is about to make the problem of inflation much worse, but you are ignorant if you don't understand how appropriations bills which were signed into law while Donald Trump was President, are mostly responsible for this increase in inflation that we are currently seeing in 2021. Regardless of who won the 2020 Presidential Election, inflation was going to be on the rise right now. That has been evident since the fall of 2019, which was before the COVID-19 pandemic even began.

So, I will direct this question one more time towards the party of hypocrites, who only pretend to care about inflation and being fiscally responsible, when a Democrat is President :

QUESTION :

Where was this outrage over President Donald Trump's budget proposals, and the over-sized spending packages which he signed into law?

ANSWER :

There was NONE ... because it's not something you truly care about, unless you think you can use it as a weapon to attack a Democratic Party President with.

What do the poor choices that Biden is making have to do with Trump? This is no better than Republicans justifying separating toddlers from their parents “because Obama did it first”. They’re all worthless.

 

[DC_Vol]

There’s two important things here as I see it.

1. Bernie intentionally misleads people into believing their “profits” (which he uses as a pejorative) were due to “price gouging” without addressing the simple reality that their prices have not tripled or even doubled for that matter. So he’s obviously misrepresenting how they made an extra 181% if prices likely rose 10% (idk their exact menu price changes).

2. The obvious answer here is they sold more product. The obvious question is how and it’s the one Bernie doesn’t want you to ask because he knows the answer you’ll come up with is that Bernie and friends killed about 50% of the restaurant industry with their policies

He knows his audience is dumb enough to just see the words “profit”, “price gouging”, and a ceo getting a raise and be triggered without asking “how”

Yup, that was one of the first things I pointed out with respect to Bernie’s tweet. There are a lot of ways to grow your profit. New stores, growing their digital business, one timers, etc. It makes for a good sound bite, but one would really have to peel apart the same store sales story to know if what Bernie implies held true.

However, if I were in making a bet on it, I would bet Chipotle passed along a lot more than their own inflation on to the customer. I would think they have long term price contracts on their biggest inputs (chicken and beef) yet still passed on cost increases. Yet feet keep coming through the door.

 

[Orangeburst]

9.7%

 

[OrangeTsar]

Core Inflation is indeed through the roof. But at least ONE thing is cheaper now than when Uncle Joe ascended the podium….crack pipes are FREE