Re: PING! Michael

On 2024-11-23, Dave Smith <adavid.smith@sympatico.ca> wrote:

On 2024-11-23 10:14 a.m., Cindy Hamilton wrote:

On 2024-11-23, Dave Smith <adavid.smith@sympatico.ca> wrote:

On 2024-11-23 9:04 a.m., Janet wrote:

>

    20 % import tariffs are going to raise US cost of living
for everyone, including prices in grocery stores.
>

>
Everyone says that grocery stores operate on very slim margins of
profit, but it never seems to take much for them to justify a big jump
in prices. Many times it is just the suggestion of a possible future
shortage and there is an immediate jump.

 
They have to charge enough today to pay for tomorrow's orders.

>
Yes, of course, but there is no shortage of excuses for assuming there
will be shortages and reasons to profit on the fear.

 

The cost of fuel to operate
the trucks and trains is factored into the cost of shipping and even
though it is only one factor in the cost of transportation a 10%
increase in fuel prices is likely to lead to a 10% increase in the
retail price. Along the same line, when Hurricane Katrina struck in 2005
they were afraid of massive fuel supply shortages resulting from storm
damage to facilities near New Orleans.  There was nowhere near as much
disruption as they had feared, but gas prices here rose 30% immediately,
and they were slow coming back down.

 
That's always the way.  Have you only recently started paying attention?

>
Oh of course I just started paying attention. That is why I used the
example of something that happened 19 years ago.

2005 was not exactly the dim, distant past for us.

A recession will bring prices down.  Nobody wants that.

--
Cindy Hamilton