By Sulma Arias
In 2004, I was a single mom raising three daughters on my own. I worked three jobs, including an overnight shift as a translator at our local hospital, to make ends meet. Every time I stood in line at the supermarket, I worried about what I would have to put back on the shelf to stay within our weekly $100 food budget.
My daughters are all grown now. But whenever I’m buying groceries, I still get that horrible feeling in the pit of my stomach as I remember not knowing if we would have enough to eat, and how much — or how little — I could provide for my family with $100.
Prices for all of us have gone way up since Covid, and $100 now buys about $65 worth of groceries compared to five years ago. This puts a huge bite on working families, because we spend most of our income every month — as much as 90 percent — on food and other necessities. So when prices rise, we hurt the most.
Big corporations tell us that policies and supply chains are to blame for rising costs, but there’s a big part of the story they don’t want you to know: These giant corporations are themselves largely responsible for higher prices.
According to a new report by the Federal Trade Commission, the largest grocery retailers — which include Walmart, Kroger, and Amazon, which owns Whole Foods — used the pandemic as an excuse to raise prices across the board. The same is true for big agribusinesses like Tyson Foods and DuPont, which sell the lion’s share of meat products and seeds.
These giant companies wrote themselves a blank check during Covid, which they now expect us to pay for.
What all of these corporations have in common is they always want to get bigger. Why? Because when consumers have fewer choices, corporations can force us to pay higher prices. This is especially true with food, which none of us can live without. And according to the FTC, a big reason for these higher prices is corporate greed.
Time and again, big companies tell us that if they could only get bigger, they would pass savings on to consumers. This is almost never true. Instead, they give money back to their investors and reward executives — like Walmart’s Doug McMillon, who takes home over $25 million a year, and Kroger’s Rodney McMullen, who makes more than $19 million. That’s 671 times more than the amount an average Kroger’s worker makes.
Corporate consolidation can have deadly consequences. In health care, which my organization tracks closely, we see that the domination of private insurance by a handful of companies — Aetna, United Healthcare, and Cigna — leads to bigger bills, worse health outcomes, and lost lives.
The profits of retailers and agribusinesses have now risen to record levels, as much as five times the rate of inflation. How do companies like Tyson Foods, Kroger, and Walmart boost profits? The way they always do: by raising prices, while 65 percent of Americans live paycheck to paycheck.
No American should ever have to work three or more jobs just to survive: not in 2004, 2024, or 2044. We want a world in which every one of us has what we need not only to live, but also to dream. Identifying who is behind the rising cost of everyday essentials is a necessary first step.
Sulma Arias is executive director of People’s Action, the nation’s largest network of grassroots power-building groups, with more than a million members in 30 states.
Charlie Blizard says
Ridiculous foundation for “blame the rich”, govt spending is the reason for inflation. Not some evil rich greedy corporate cabal
Mark says
Do not pass Go, re-read article.
Deborah Coffey says
Um, there is real data proving their mega profits since the pandemic. And, there’s only one word to describe those profits…GREED.
Sherry says
@cb. . . please post credible evidence for your claim or we will all know you are mindlessly posting BS FOX talking points.
Michael Purington says
Wake up. Unless you’re rich or MAGA — then it’s pearls before swine.
Repub says
Sure, keep drinking the democrat kool aid
Mark says
So fun when the orange cultists can’t face facts and go into Kool-Aid or snowflake mode.
T says
School what you need your gop voted down Inflation act read
PAUL FEELEY says
This is an opinion piece only and illustrates the gross ignorance of the author.
A point to consider… What single commodity’s price change affects every commodity in the grocery supply chain?
Energy….!!! What did the current administration do after taking office…? They raised the cost of energy.
Boom….!!!!
The Sour Kraut says
It is a simple thing to look up the earnings reports of these companies. Every publicly traded company must make this information available. This is not opinion, this is fact.
Pierre Tristam says
Following up on the Sour Kraut: From the FTC report referenced in the article: “Food and beverage retailer revenues increased to more than 6% over total costs in 2021, higher than their most recent peak in 2015 of 5.6%. In the first three-quarters of 2023, retailer profits rose even more, with revenue reaching 7% over total costs, casting doubt on the assertions of some companies that rising prices at the grocery store are the result of retailers’ own rising costs.”
Joe D says
Yep…those are the FACTS about food prices, but it doesn’t fit with the right wing “Blame BIDEN for EVERYTHING” (maybe even CANCER and HANG NAILS) narrative , so it MUST be a lie?!?…or the ever popular “FAKE NEWS” chant propagated by the ORANGE MAN himself, when things aren’t going his WAY…sad.
The NUMBERS are not POLITICAL…they are simply the TRUTH!
Not something we’re hearing much about from the ultra conservative MAGA section.
Ray W. says
Wow! Just how off the mark can PAUL FEELEY be?
Back to the basics, PAUL FEELEY.
In February 2021, OPEC voted to cut combined crude oil production by six million barrels per day, with Saudi Arabia announcing it would subtract another million barrels per day, for a total of seven million barrels out of an international total of just under 100 million barrels per day. In a May 9, 2023, EIA article, the author explained it this way:
“Over the past few years, OPEC+ meetings have focused on reducing oil production to help stabilize oil prices after the COVID-19 pandemic, which dramatically reduced demand and led to significantly lower oil prices. More recently, on April 2, 2023, OPEC+ members agreed to cut oil production by 1.2 million b/d until the end of 2023, which is in addition to production cuts already in place. This agreement means production targets will be 3.66 million b/d lower each month relative to actual August 2022 production through the end of 2023. Although these cuts are significant, we expect that growth in non-OPEC oil supply over the next two years will help balance markets and limit any significant increases in oil prices.”
Prices for crude oil slowly began to inexorably rise after the February 2021 production cuts as oil stockpiles dwindled. Taking out just over 7% of the world’s daily production of crude cannot easily be replaced. It was OPEC and not the current administration that caused the price rise for crude oil based energy supplies.
At that time of the 2021 OPEC vote, international crude oil prices were in the $35 per barrel range, largely due to pandemic-induced cuts in consumption. Gasoline in the U.S. was selling at approximately $2 per gallon.
I don’t know just how many FlaglerLive readers know how much crude oil is stockpiled worldwide, but in the U.S., crude oil storage capacity as of March 2023, per the EIA, was 814.87 million barrels of crude oil. That figure includes oil already deposited in storage tanks, oil in transit in pipelines, oil in rail tank cars, and oil in ship and barge tankers. The figure excludes oil coming from Alaska, as that oil does not necessarily come to the U.S., it might be enroute to other nations.
It should seem obvious to all FlaglerLive readers that when OPEC significantly cut crude oil production, supply shortages would gradually begin to ripple through the international marketplace and even into the American oil industry, but it wasn’t an immediate and abrupt shock. Within a year, international prices for crude oil were in or above the $80 range. Eventually oil broached the $100 per barrel hurdle. U.S. energy companies began drilling for more crude oil in order to take advantage of the higher prices. Last year, American oil production averaged a record-breaking 13.2 million barrels per day.
OPEC has repeatedly voted to keep and even expand the original production cuts in its effort to keep oil prices at or above $80 per barrel. The most recent vote extended current production reductions through June 30, 2024.
The EIA defines “spare OPEC capacity” as the amount of additional crude oil that OPEC could begin extracting from existing wells in 30 days and maintain that rate of extraction for at least three months. Currently, OPEC has a spare capacity of 4.33 million barrels of crude oil per day. This is without drilling any new wells.
Prior to the pandemic, Saudi Arabia announced plans to develop additional infrastructure in order to increase overall export capacity to 13 million barrels per day. It already could export 12 million barrels per day. Late last year, Saudi officials announced that the country was abandoning plans to increase its export capacity. Current Saudi extractions hover in the 9 million barrel per day range. Industry analysts estimate that if Saudi oil sells at or above $80 per barrel, the entire national budget can be funded by oil revenue alone, even at 9 million barrels per day.
There were 13 OPEC member nations as of the February 2021 vote. Angola left the alliance late last year, taking out 1.2 million barrels of production per day. There are another 10 non-voting members. Brazil announced that it would accept an invitation to join those 10 non-voting members at some point this year, bringing in its 3.2 million barrels of production per day. Between these 23 nations, total production capacity is well over 40 million barrels per day. OPEC+ will soon be economically stronger than it used to be.
During the past three years, non-OPEC nations have increased crude oil production by more than 2.9 million barrels per day. The majority of the increase came from the U.S. and Brazil, with Canada a distant third. Given the long-term higher international prices for various grades of crude oil, American energy companies are posting record profits. But in this case, it cannot be deemed “gouging”; it is simple the product of international supply and demand. When international prices rise, American energy companies drill for more oil. When prices drop, they reduce efforts to explore for more oil.
On March 21, 2024, the EIA published another of its “Today in Energy” papers. In this article, the EIA predicts that worldwide short-term demand for crude oil will continue to outstrip supply. U.S. gasoline prices are expected to hover in the $3.50 range through the end of 2025. Worldwide consumption of crude petroleum products and distillates are expected to average 102.2 million bpd in 2024. Worldwide production in the second half of this year is expected to average 101.3 million bpd. Crude oil stocks from all over the world will have to be drawn down to make up the difference.
Natural gas production in the U.S. is also at record levels. After Russia invaded the Ukraine, most European countries nearly immediately imposed sanctions on imported Russian natural gas. Demand for American natural gas rose significantly. Prices for natural gas spiked to over $6 per million BTU’s (1000 cubic feet) because America was exporting some much of its domestic natural gas to Europe. Demand outstripped supply. Then, one of the largest and newest liquefaction facilities blew up. Exports dropped, though not by that much. Natural gas prices in the U.S. have dropped to under $2 per million BTUs because of production increases and export decreases. A temporary glut in domestic supplies of natural gas exists.
FP&L recently applied for permission to lower its energy prices to consumers because of the drop in domestic natural gas prices, after getting permission to raise rates when natural gas prices rose after the invasion of the Ukraine.
The damaged liquefaction facility recently reopened, and American exports are on the rise again. Three more new liquefaction plants are slated to soon open, thereby further increasing American export capacity.
America exported zero natural gas in early 2016, because no company had built a liquefaction plant for export of liquified natural gas (excepting the one in Kenai, Alaska that was closed decades ago). Since 2016, when the first continental liquefaction facility opened at Sabine Pass, Louisiana, America has become the largest natural gas exporter in the world. This happened over only eight years! The Cheniere Energy story is a fascinating one. Perhaps I will pass it on to FlaglerLive readers one day.
Hydropower production has been steady, despite significant drought conditions that have eased somewhat.
Nuclear power production has remained steady.
Windfarm power production is increasing rapidly.
Solar farm power production is increasing rapidly.
Please, PAUL FEELEY, stop engaging in the spread of disinformation. You are extraordinarily wrong in your claim. The current administration did very little to impede the domestic production of many forms of energy in this country. In fact, domestic energy production has rapidly increased during the term of this administration, on many fronts.
Please don’t go stupid on FlaglerLive readers by claiming that shutting down the northern leg of the XL pipeline caused an energy shortage. The northern leg story is one of the more false of the many false arguments floating around the internet. The northern leg might not yet be open today even if approval to build it had it had not been withdrawn because construction of such a long pipeline takes time.
Let’s face facts. An incomplete pipeline does nothing to impact past energy price rises. And the southern leg of the XL pipeline is already full of oil extracted from North Dakota oil fields. The Canadian company has another pipeline that pipes oil through Canada and it has access to rail tank cars to transport whatever oil it extracts. If the northern leg of the pipeline were ever to be completed and hooked up to the southern leg, and if Canadian oil were ever to enter the southern leg of the pipeline, it would displace the American oil already flowing through it. The displaced American oil would then have to be transported to market by rail.
Rail transport costs significantly more than pipeline transport (roughly $15 per barrel vs. $5 per barrel), so American oil companies would have to pay more to get American oil to market. Either way, any additional Canadian extracted oil would have to be transported by rail. Either Canadian companies will have to pay more for the rail transport or American companies will pay more, because existing pipelines are already operating at full capacity.
Does anyone wonder why BNSF is making so much money? It is still transporting crude oil from North Dakota by rail, because the southern leg of the XL pipeline is limited to some 600,000 barrels per day. North Dakota is still producing some 1 million barrels per day. BNSF owns the rail line between North Dakota and Houston. Its trains were running as fast as they could between those two sites. Limited in overall train length by marshalling yards built to handle trains no longer than 108 cars (according to my son who used to work for BNSF as a train dispatcher), BNSF would accept product from the highest bidder. When North Dakota oil companies were paying more to get oil to Houston (before the southern leg of the XL pipeline opened), North Dakota farmers had an entire winter wheat crop left unshipped in overflowing silos and in the fields; they simply couldn’t pay as much as the oil companies were paying. When the southern leg opened with its northernmost point in Nebraska and rail transport of crude oil was diverted to the shorter route between North Dakota and Nebraska, instead of travelling all the way to Houston, the faster turnaround times meant that BNSF could then devote grain cars to transport the winter wheat at a price the farmers could afford to pay.
In summary, the current administration did very little to increase American energy prices. Indeed, history shows that the opposite has happened. Oil production is at record levels. Natural gas production is at record levels. Wind energy production is at record levels. Solar energy production is at record levels. The only part of the overall American energy picture that is lower today than it was four years ago is electrical energy produced by coal-fired plants. Since coal-fired electricity production is the most expensive way to produce electricity available today, it stands to reason that it is rapidly falling in overall usage. Many current coal-fired plants are fired up only on days of highest electricity demand and then shut down when demand drops. Why pay $110 per megawatt of power for coal-fired plants when natural gas-fired plants can produce the same amount of electricity at a cost of between $50-60? When both wind power and solar power can produce energy at costs lower than can natural gas?
Sherry says
Good morning Ray. . . unfortunately, the paul feeleys of the US are not interested in facts. They are FOX indoctrinated, full stop. But, as always, thanks for trying.
PAUL FEELEY says
Sherry and Ray…. Just the facts it is…
Energy accounts for 9% of the consumer price index.
A rise in energy affects all other commodities. Ex: Higher fertilizer costs, increase in food production costs, delivery costs, etc, etc…
Note: The largest factor in inflation was the increase in the money supply or the devaluation of the dollar by 38%.
Your post insists that the Corps are price gouging…how? Their production expenses go up and who exactly should bear that cost..? The Corp is a legal entity, not an individual. So expenses must be paid by someone…Who? Should the workers be paid lower salaries? Should stockholders pay…and how? Nope, none of the above…the increase in production costs is always folded into the cost of the product….which the customer pays. If the product no longer sells. It is eliminated or the Corp is. As an abstract example, I witnessed this in the Northeast Egg market. Electric rates doubled and the Egg market in the Northeast collapsed. They could not compete with the South on the price points of their product…They shut down.
It’s basic MATH>..!!!
And Yes, I would highly recommend FOX ….Business and CNBC… I further suggest that reading WSJ, Bloomberg or Forbes would provide a better foundation for judging the impacts of World financial and U.S. political decisions on the economy….It’s Always about the $$$$….!!!!! Based on your comments, it would appear that these sites are not within your current sphere of influence. Unfortunate…!!
And yes, OPEC+ cut production …several cuts to be exact….For the record: OPEC cut oil production as the group and its allies began a new effort to prevent a global surplus and shore up prices. Output from the Organization of Petroleum Exporting Countries fell by 490,000 barrels a day last month to 26.57 million barrels a day, according to a Bloomberg survey.
The Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, have made a series of voluntary oil production cuts since late 2022. These cuts are in response to rising output from the United States and other non-member producers, as well as concerns about demand due to high-interest rates in major economies.
The OPEC monthly report may be accessed here: https://momr.opec.org/pdf-download/
Some additional reading
https://www.csis.org/analysis/biden-makes-sweeping-changes-oil-and-gas-policy
https://taxfoundation.org/research/all/federal/biden-oil-gas-energy-budget/
https://www.foxbusiness.com/economy/biden-energy-policies-inflation-oil-gas
https://nypost.com/2024/04/12/us-news/electricity-costs-soar-under-biden-administrationenergy-prices-soar-under-biden-administration/
https://www.foxbusiness.com/economy/energy-prices-soar-biden-administration-jacks-costs-drill-public-lands
A bit of research goes a long way…!!!
Ray W. says
Nice addition to the comment thread. You still fail to admit that your conclusion in your comment that the current administration raised energy prices was demonstrably false. You lost quite a bit of credibility when you made your false claim, and you won’t regain what you lost until you admit your error. It is difficult for you to win an argument when you start from a losing position. Please get better.
I did not argue that “Corps” are price gouging. I argued that it might be so in the context of Publix and I accepted that Publix might not be price gouging, so something else is going haywire in your reasoning process. I argued that an earnings report that reflected a profit of over 7% on gross earnings suggests multiple possible conclusions, where an industry standard profit is in the 1-2% range.
I argued that American energy companies are NOT engaging in a practice of price gouging; they are making record profits by taking advantage of OPEC+ repeatedly voting to cut overall production in order to manipulate the international crude oil marketplace to OPEC+’s benefit. American oil companies are profiting as any company would profit when someone else manipulates the marketplace. If OPEC+ drives up the price of oil to $100 a barrel, American energy companies will sell their oil for that amount. Nothing wrong with that. They are drilling for more oil because the price is high right now. If the price drops, they will reduce their exploratory efforts.
You present as a commenter who just makes up things and then you attack when you are proven wrong by making up more things. This approach will not restore your already seriously damaged credibility. You got some things right in this reply, so you have proved you can do it. Again, start by admitting you were wrong when you claimed the current administration adopted policies that drove up energy prices.
Steve says
Informed post. Thanks for reality Ray
Laurel says
Ray W.: Railroads have been a favorite investment of mine for years. I believe BNSF has to be invested in through Berkshire Hathaway.
After cruising through the Florida panhandle, we were amazed at the number of, and size of, solar panel farms! Hundreds and hundreds of acres worth, and that’s just what is visible from I-10. Very encouraging.
And… anyone can go to different grocery stores and see very different prices. Publix has become an off the charts jaw dropper, while Aldi is still on planet Earth. Target has good deals, as does Walmart if you can hack the crowds.
I’ve written here many times that the prices are corporate driven.
Ray W. says
Thank you, Laurel. You are correct that Berkshire Hathaway wholly owns BNSF. My younger son worked for BNSF as a dispatcher. He was allowed to invest in BNSF stock; you and I are not. That was a considerable employee benefit. Dispatching is a difficult job. Not everyone can do it. From what I understand, BNSF has a difficult time filling training classes and a significant number of potential dispatchers drop out.
Joe D says
Wow…thank you RAY W!
There are those PESKY FACTS again, that don’t fit the “Blame Biden for EVERYTHING” chant AGAIN…
However the general public appears to IGNORE facts…and subscribe to the “WHAT HAVE YOU DONE FOR ME LATELY” stance…
Believe me, when I say, that if you expect a second TRUMP term is going to do ANYTHING to advance the cause and needs of the AVERAGE WORKING AMERICAN, you are going to be SADLY surprised 3-6 months into his second term ( when it’s too late to do anything about him)
He spouts all these promises, JUST to convince people to VOTE him back into office. Just don’t listen to what he’s SAYING….pay attention to what he’s DOING!!!
PS: those so called “tax cuts” he gave out the first time around, went mostly to people in the top 10% of incomes, and only PENNIES went to those with incomes below $50k. And by the way…he did it with NO PLANS on how it was going to get PAID for..contributing a LARGE amount to the NATIONAL DEBT, that Biden and the DEMOCRATS are CONSTANTLY being BLAMED for!
WAKE UP VOTERS!
Steve says
See Saudi output Chart for the last 5 years vs Ability to refine.
JOE D says
Absolutely correct…Saudi Arabia essentially “slapped the US in the face,” by going along with OPEC+ oil production levels (includes Russia)…however the US had to decide if that decision by Saudi Arabia was worth cutting (or distancing) Saudi/US alliances in the Middle East….as we can NOW see why PUNISHING the Saudis could have given us NO ALLIES in the Middle East.
Nephew Of Uncle Sam says
So the Administration (any) can just go and arbitrarily raise energy profits, hmmm.
Isaac Cox says
I couldn’t agree more. The United States is largest oil producer on the planet. The government should require US oil companies to sell American fuel to Americans at a cheaper price instead of selling on the international market. That’s our oil under our country we should benefit from it. If they US oil companies aren’t for America we should cancel their leases and nationalize our oil. America First. Drill baby drill
Ray W, says
Hello Isaac Cox.
I think you might be referring to the time in the mid-seventies when Congress passed a law forbidding the export of American crude oil.
This happened shortly after the first OPEC oil embargo. At that time America had greater refinery capacity than it does today, if only barely so. In 1982, the oldest record I could find on the EIA site, America’s 301 refineries were processing 17.9 million barrels of oil per day. Today, our 149 refineries are processing 17.4 million barrels per day, a remarkable increase in efficiency.
No new refinery has opened in America since 1976. I am aware of a North Dakota micro refinery receiving permits to start construction a short time ago, but it hasn’t opened yet. It was to provide diesel fuel for the upper northwest region in order to fuel the semis that service all the oil wells that were drilled after 2009. Semis pick up crude oil at well sites and transport the oil to railhead storage tanks and it is expensive to transport diesel fuel southern refineries all the way to the isolated region.
So, for some 40 years, American energy companies did not export much crude oil, except to Canada and Mexico, and that occurred on a small scale.
Then came the American Shale Revolution from 2008 to 2016 or so.
Oil production soared from roughly 5 million barrels of oil per day at the end of 2008 to just under 10 million barrels of oil per day in 2015. It continued to rise at a slower rate to the 13.4 million barrels of oil per day we produce now.
A number of today’s refineries are on the east and west coast, far from the major production centers in the Bakken and Permian shale oil fields. These refineries have almost always imported crude oil from wherever is it cheapest to buy and transport, often from the North Sea wells or from Nigeria.
Crude oil production in Texas and from North Dakota surpassed local refinery capacity years ago, meaning Texas and Louisiana refineries cannot process all the new sources of oil, so some of the excess oil must be exported.
In your rich fantasy world, American oil extractors will keep extracting the same amount of oil no matter what the price. In the real world, if prices drop too low, drilling stops and production drops. There will be no drill, baby, drill if the price of oil drops too low.
Yes, in a communist or Socialist world, the government sets production levels and the prices paid, regardless of profits and losses. We don’t live in a communist or Socialist world.
In 2016, Congress repealed the 1976 ban on exports because refinery owners simply could keep up. We are now one of the world’s bigger crude oil exporters.
My knowledge of the American energy industry comes from 50 years of curiously reading as much as I can about this incredibly complex subject.
I have no idea where you, Isaac Cox, get the idea that we can just cancel leases and nationalize “our oil.”
First of all, the vast majority of our recent rise in crude oil production comes from oil wells that are not leased from the federal government; it comes from wells drilled on privately-owned land in North Dakota and west Texas. Good luck nationalizing those projects.
Secondly, property rights are protected in our liberal democratic Constitutional republic. We just can’t take over the private right to drill, even on federal land. If an energy company wins a bidding process for a lease, it has the right to drill or not to drill.
Your comment does raise a question of the gullibility of the drill, baby, drill crowd. Right now, OPEC+ is still restricting export of crude oil, and the price per barrel is still steadily dropping. Brazil is expanding production, as is Guyana and Canada. American energy companies are not going to drill for new oil if it means that prices will continue to drop. They have come to like the profits that accompany the high prices caused by the OPEC production cuts.
Joe D says
Ever since 2022, everyone wanted to BLAME President Biden and the Democratic Administration for the food price elevation, so it’s GOOD that the facts prove otherwise!
All people had to do to prove it for themselves, was to look at the food producers and food retailers profit reports!
If elevated prices were REALLY due to supply chain issues and transportation issues, then the Profit levels would be lower or the same as pre-pandemic levels…
Well, not only are profits NOT suffering now, the elevated prices are now proven to be PRICE GOUGING by the companies. Corporate food producers and retail food sellers have returned RECORD profits ( especially the EGG producers who had the highest profit margins EVER).
The FOOD industry thought consumers were SO USED to paying ever rising prices on the shelf, that consumers would simply CONTINUE to pay higher prices through price gouging and shrinkflation ( smaller packages, but they charged the same price), without any complaints.
Hopefully voters will REMEMBER the FACTS about the situation and not the political hype being pushed by CONSERVATIVE Media! We’ll see…
Larry says
Well said. In a swirling attack on Biden the willfully ignorant spew their hate and misinformation. Speaking and voting against their own interests.
JimboXYZ says
And in a pandemic, this should’ve been like the hurricanes for gouging that the State of FL has protections. Since the pandemic was national & global, that falls on the Biden-Harris administration to put in place gouging safeguards for consumers. The FTC took 3+ years to issue this report March 2024 ? Yep, I get it, it takes time to gather the data & then draft & finalize a report. But 3+ years, the data is readily available, 1 year is too long to actually respond. They knew from the CPI that this was going on monthly. Biden didn’t even acknowledge it, And so here we are in 2024 an this boom in GDP growth is nothing more than selling around the same volume of items at higher (double pricing to consumers. That $ 15/hour minimum wage isn’t a reality yet in a lot of States. And even if it were more, labor still has to work an hour at a time for a paycheck by paycheck recovery from the 8+ months of 2020 when States were either shut down or like DeSantis was doing here in FL, trying o tread water & stay open. The individuals savings were raided by the Fauci shutdown. Trumps biggest mistake was letting Fauci have a platform & a voice on Covid. He’s always been a DC Swamp Pet of a legacy. Anyone still think Biden needs 4 more years. He can’t even negotiate a cease fire beyond enough time for relief aid to enter & exit the war zone. Anyone think Biden is ending a war ? Even the pullout in Afghanistan was a messy one. Ukraine war, same thing, Biden keeps funding that for billions. Yet somehow additional funds for the border crisis is excluded from the funding ? And consequently, inflation/gouging whatever the spin is on all of this gets ignored for 2024.
End of the day the Dow/Wall Street is in fine shape. Main Street is a mess. The wealthier got wealthier, the Middle Class & Poorest are paying for Covid pandemic. Even DEI&B has to feel like they were lied to by the Delaware Head Liar in Charge (HLIC).
Ray W. says
“[T]he individual savings were raided by the Fauci shutdown.”
According to a November 7, 2023, report issued by the Boston Fed, titled “Have US Households Depleted All the Excess Savings They Accumulated during the Pandemic?”, the authors came to the exact opposite conclusion that JimboXYZ presents.
“If we assume that the saving rate would have increased in line with the 2018-2019 trend, then excess savings peaked in mid-2021 at over $2 trillion, and about $321 billion remains available today. If we assume that the saving rate would have remained fixed at the 2016-2019 average, then the amount of excess savings peaked in late 2021 at about $2.5 trillion, and about $2 trillion remains.”
The Fed defines excess savings as savings greater than expected, according to previous trends, during the first two pandemic years. Citizens received two rounds of stimulus money and they cut overall spending rates. Over a four-year average rate of savings during the years immediately prior to the onset of the pandemic, people saved $2.5 trillion more than expected in their savings accounts. Using a shorter term (the two years prior to the onset of the pandemic), people saved $2 trillion more than expected.
Either way, JimboXYZ is fantastically wrong in his assertion. People’s savings were not raided; their accounts were supplemented. This data has been out there for years. Economists have repeatedly commented on the unusually high rate of savings in the US during the pandemic. How can JimboXYZ be so wrong so often? I am glad he seems to be trying harder, but garbage in will be garbage out every time.
JimboXYZ says
Facts are the Faucian shutdown meant no income for wage labor. All one has to do is look at the restaurants that are no longer operational & shut down just in Flagler County. And when businesses that had 2nd shifts for 24/7 hours (Wal-Mart) wouldn’t that entire shift being phased out have no income until they found another job ? The monthly labor statistics for a definition of full employment have always been suspect. Unemployed rotate out of being counted when they “give up looking for work”. I’d like to see anyone that didn’t raid their savings being unemployed for 8+ months and FL unemployment is 12 weeks duration. The rent/mortgage, bills keep coming due even in 2020 lower prices. Jan 2021 gas prices alone spiked & surge. November 2020 was the $ 15/hour legislation passage, since those folks were unemployed, they hadn’t made a dime to recover for a Fauci shutdown. And even if they were fortunate to get employment in Jan 2021, simply hadn’t worked the hours to recover from the cash bank accounts to recover from 8 months of 2020. Compound that with inflation, the gougers are the winners, unfortunately the masses aren’t in a position to gouge anyone and therefore paid for all of this record setting GDP growth. Those folks have been left behind. At best 3+ years of Biden has been nothing more than redistributing wealth thru wealth transfers. When I read articles on being better off today vs 4 years ago. Virtually everyone of them exclude some economic sectors. Things like housing/rent, energy, food. Odd that the basic necessities in life are excluded form these reports, studies & articles. You can’t tell me that the fast food meal that was under $ 10, that is now $ 15+ is better off when wages aren’t pacing the real inflation numbers. Those that were relatively insulated from the doubling of a mortgage, the higher interest rates aren’t better off. Snapshots in time are one thing for comparisons, but can be misleading when they don’t tell the story of the misery of the day to day, month to month. That’s where seasonal year on year comparisons can be quite deceiving just the same.
Ray W. says
Yes, JimboXYZ, but you have so often engaged in “pestilential” partisan member of faction ravings in your comments that you lost credibility a long time ago.
I accurately reported on national savings trends. Of course there will always be individual exceptions to the national trends. Let’s use the ACA, for example. As I recall, when it passed some 15 years ago, well over 40 million Americans lacked health coverage. Some 18 million people already had individual coverage. Thus, about 60 million Americans were subjected to the Act’s provisions. Within a few years of its implementation, the number of uninsured Americans had dropped into the low 20 million range. Yet I saw story after story of individuals who used to have individual insurance coverage now having to pay more under the ACA. The vast majority of the 20 million who gained coverage were paying less, but the focus of the anti-ACA faction was on the few who paid more. I know a person who paid far less after the passage of the act than he paid for individual coverage beforehand, but the anti-ACA crowd was not interested in telling the story of those people. This is what you do. You focus on the few who are negatively affected and yell that the sky is falling. Well, it isn’t falling. You just cannot be fully honest in your commentary. But that is an act of personal responsibility, of intellectual rigor, of virtuous partisan action, that you just cannot engage in. You fail on each of the three fronts, over and over again.
We are better off than we were four years ago. We were in the midst of a worldwide pandemic that was not the fault of any political party in this country. Millions of people died around the world. Economies shut down. Panic set it. We are all paying for it today. You crow to all that it is the fault of one administration. What a fool you are!
Sherry says
Thank you again, Ray W., for taking on jimbo’s consistently twisted writings. You have much more patience with his complete BS than I do. I gave up on hoping for anything factual or reasonable from him many months ago. He is completely brainwashed, as is dennis. In my opinion, they are regrettably lost souls to any kind of educated truth seeking society.
Ray W. says
Hello Sherry.
I really do believe that people are capable of so much more, if only they allow themselves to grow into their potential. I have read, over and over again, comments by JimboXYZ that prove his potential. Then along comes a new comment and I can’t help but wonder how easily he seems to let the wheels fall off.
At the heart of this comment thread is the subject of whether we are better off today than we were four years ago.
If we look at the issue from an individual perspective, there are tens of millions of Americans who are worse off than they used to be. Perhaps well over a million families lost loved ones to Covid. Millions more American families are dealing with long Covid. Heart attacks happen every day. Strokes, too. Cancer. Divorce. Automobile accidents. The list is long and real for those living through trials and challenges. To me, one of the greater tragedies people endure is the loss of a spouse after 50 or 60 years of marriage. The problems are valid. But hundreds of millions of Americans are better off than they were four years ago, for just as many valid reasons. They got married. They had children. They bought dream homes. They retired. They earned job promotions or founded businesses. Their children succeeded in school, in work, in life. They graduated from high school or college or graduate school. They overcame disease, sickness, or simple ill health.
Looking at the issue from the collective “we” as opposed to the individual “we”, we clearly are better off than we were four years ago. Yes, there are problems, even daily problems. I have never had a day in my adult life when I didn’t have one or more problems (usually more) that needed solving, but that doesn’t stop me from recognizing what is good in my life. It would be absurd for me to think that no one else has problems. I have met many people who have good lives. Not one of them has had an easy life.
In the end, I accept the advice of my paternal grandmother, who was known for saying that most people are just about as happy as they want to be.
The disaffected among us would have us accept that an overthrow of our experiment in democracy would be a good thing because government is not perfect. I say, For what? Government will never be perfect. To paraphrase Churchill, he argued that democracy is the worst form of government ever conceived by the mind of mankind, until one compares it to any other form of government that has also been tried.
Sherry says
Dear Ray W.,
From a spiritual and philosophical perspective, it has been my personal experience that the acts of overcoming adversity has been a large part of how I personally define a successful life. Being born into and raised by a “financially” very poor family, I’ve been able to celebrate each and every tiny step “up” to the essentially self made life I enjoy and greatly appreciate today.
“I” was blessed with the “Boot Straps”. . . not of money. . . but, of an innate positive attitude, and an abiding belief in the family love that surrounded me. When the incessant, scary arguments (over money and drinking) between my parents became too much to bear, I found solace with weekend visits to my maternal grandparents’ farm and fish camp. Even the endless chores gave me a sense of accomplishment. I was able to work hard and put myself though university at night.
When, no matter what, you are somehow born with a “cup half full” perspective. . . I guess you have the courage and wherewithal to visualize a solution to the myriad of challenges and problems that come with each and every human life.
My Buddhist teachings of “Compassion” have helped me to understand that many, many, many of my fellow human souls have not been so fortunate. Many live lives with “no bootstraps” of any kind. Too many live lives of inner fear and desperation based on innate insecurity/lack of education/lack of family support, etc. Some of those souls lash out, looking for others to blame. Some look for a messiah to rescue them. . . when all the while their path to peace and happiness lies within.
Ray W. says
Thank you, Sherry, for your opening of your heart. I, too, am a “cup half full” person, though not every moment of every day. To me, life can be hard from time to time. It is supposed to be hard. The quickest way to make life easier is to accept the fact that life can be hard. Problem solving to me is normal because I have long accepted that having problems is normal. I guess I got that from growing up in a family with six siblings and a fair amount of parental turmoil with divorce early in my teen years. But my parents were well-educated, caring and progressive. I had many advantages in my youth, and I am thankful for my family blessings.
Steve says
See Saudi output Chart for the last 5 years vs Ability to refine.
Deborah Coffey says
Thank you for this article. Just a few hours ago, our family decided not to shop at Publix anymore. We all agreed that Publix is price gouging for no good reason, as in corporate greed. Guess we weren’t far off the mark.
Mothersworry says
You weren’t off the mark at all. I can buy chicken breasts for 50% less at smaller stores. I know their expense is higher, bigger stores, more employees and so on. They will charge as much as they can until folks shop elsewhere. Oh, the “bogo’s” are a come on.
Forget Publix says
I also decided Publix is way out of control. I planted a victory garden at Lehigh trailhead I learned about from this site. I wrote them, and Rented from Palm Coast a raised garden bed for $15 and its coming to fruition. Other things I buy from Aldi who’s prices seem normal compared to the Publix across the street. I won’t pay $10 for a smaller jar of mayonnaise. Ever. I know when Im being ripped off.
FlaPharmTech says
I’m employed by Publix, but shop Aldi. Publix pricing is obscene. Oh, and the high prices Publix charges DO NOT trickle down to employees, oh but the higher ups, heckya.
PB says
Go Deborah. No one is more guilty in this town than Publix. Anything they sell that someone else carries is much higher. Only BOGO is usually cheaper. Cannot believe they own Flagler county!
As for the article, recognize it people. Greed and corruption has taken down every great empire in history!
Ever hear of Rome?
John Dixon says
You are wrong.
Ed P says
But Publix is employee owned. In fact they are the largest employee owned corporation in U.S. Almost like supporting local business.
And their customer service is second to none, enjoy Walmart, Kroger, and Aldi.
Al says
Deborah, grocery stores on average make around 2 or 3 percent profit margin….if you want to blame tony the tiger that’s cool but your local grocery store is not your enemy.
Pierre Tristam says
A little caveat here. Let’s take Publix as an example. This from its year-end report: “Net earnings for the fiscal year ended Dec. 30, 2023 were $4.3 billion, compared to $2.9 billion in 2022, an increase of 49%.” $4.4 billion in profits, on sales of $57.1 billion. Not a bad margin, and not quite as low as 1-2 percent.
C'mon Man says
No Pierre, read the entire report. You know better than that. Bottom line… Publix saw a 1% profit over 2022.
Pierre Tristam says
The corporate apologists can slice it any way they wish–corporate PR is as a cherry-picking grove–but bottom line is Publix’s net profits increased by nearly 50 percent in 2023.
Sherry says
@ Deborah. . . you are so “Right On” about Publix! So glad to be living close to a Trader Joe’s once again!
James says
Was there ever a time when Publix didn’t charge a premium over and above what others did for the same items?
Short answer, no.
It’s not a case of price gouging if they’ve ALWAYS been overcharging customers.
Just say’n.
Samuel L. Bronkowitz says
Semantics.
SS says
Perhaps it is time to regulate the major food producers. Isn’t that what the government does with other things that the population can’t live without?
Ed says
Price of labor,fertilizer,electric, medical,feed etc etc. The cost gets pasted down the pipeline so eat less or ask for another raise in the minimum wage so the avalanche keeps getting momentum
tulip says
How about those 25 and 19 million dollars the execs are getting? Gee, one could think they could live well only 20 million and 15 million and help the customer pay a lower price. Guess not. instead they keep raising the price. Those huge mansions, yachts, private planes, do cost money. All these people that got pay raises to $20.00 an hour still can’t afford a lot of things because food, clothing, rent etc hit the roof so they are no better off than they were. A lot of people are blaming President Biden for all this inflation. What makes people think it will instantly go away if Trumpy is re elected? It won’t.
FlaPharmTech says
$20.00 an hour??!! I wish.
common sense says
This issue is world wide and not just in the US. Thus this is not a political issue. In some other european countries the problem is worse than here in the US. Wake up and instead of just focusing on the politics in the US, read what is happening around the world.
Al says
The jerk in the Whitehouse has the solution, become cannibals like the ones that ate his uncle.
Don’t blame the corporations blame the government for high inflation and don’t trust the FTC. Someone was down on Publix but they didn’t consider the better quality of the items you purchase there. There’s always Wal Mart or the dollar and a quarter store.
I’m retired but I still work in transportation part time, I demanded a pay raise and you should too. Tolls have been raised everywhere and trucks get tolled in places where cars drive free. Fuel is over $4 a gallon and tires are over $500 each . Mechanic shops charge $150 an hour for labor.
Vote for who you want but don’t blame others for your poor choice.
JW says
The comments above clearly suggest that most people don’t know much about how pricing works in the US. They are either ignorant because nobody gets educated here on economics or indoctrinated by political views or both!
We are a country of freedom and that includes pricing and profits and “controlled” by mostly insufficient competition.The FED thinks the interest rate can control inflation but there is no theory for it, only a religious belief. And the President and Congress have no control over prices unless they regulate them, but that’s a dirty word in the US and strongly opposed by lobbyists.
Capitalism is not so easy! Even politicians don’t know what to do other than benefit from it, paid by lobbyists.
tulip says
What president put the high tariffs on imported goods, especially from china? TRUMP so that cost has been added on to the price WE pay
Sherry says
Thank you JW! It’s terrible to realize how many US citizens are so poorly educated that they do not understand even the basics of “Capitalism”.
Stephen says
All will be well. The south is ready for unions. This should increase wages for all workers.
Mary Jane says
It’s price gouging, greedy corporations are trying to make up for the money they lost during the COVID outbreak, stop blaming it on the Democrats.
dave says
Corporate greed plan and simple. You reduce the cost of groceries and the cost of living in the US and you have a winner. We also moved away from Publix, sure, clean store, pleasant shopping conditions, friendly people, but stuff is costing more, too much more. When I can go to Wally World and buy the same thing(s) for dollars less, there is a big problem. Sure from farm to table cost have gone up from the farmer to the supplier to the store. But who’s fault is that, the farmer, nope.. His feed, fuel and operating cost are up and that all started with his suppliers. Should there be controls, about time if someone has the balls to actually do it.
Dennis C Rathsam says
Personally, I would enjoy a mean tweet to go along with 1.4% inflation rate, $2.00 gas! Biden destroyed everything TRUMP had humming along. BIDENS killing policies, regulations and plain stupitity, now have us on the brink. 2 new wars, crime, interest rates, college protesters, rule the roost! Look What has Biden done to AMERICA!
Endless Dark Money says
lol if trump had been successful in leaving NATO we already be in ww3. Democrats are always better for the “economy” look it up. literally research that and get back to me. I know.. don’t speak bad against their orange jesus or they will use all means to discriminate, retaliate, and defame anyone who doesn’t agree with their fascist ways. Protesting is ok its part of being somewhat free. You can ban protests like racist ron but it likely wont end well.
endangered species says
lol talk about a guy living under a rock. there was that global pandemic thing that killed millions of people. endless growth or the house of cards will fall.
nothing screams I have no class more than trumper.
David Schaefer says
Keep using your bleach injections Rathsam….
Bill C says
Dennis Rathsam is absolutely 100% correct- “stupitity” is the root cause of all our problems.
Sherry says
My laugh of the day Bill C. LOL! LOL! LOL! Thanks!
Dennis Berg says
The rising cost of groceries can be ameliorated by not buying the unhealthy, highly processed food produced by large corporations. The wall of cereal boxes in the picture above is a prime example. They’re loaded with sugar and refined grains. Avoiding the snack, ice cream and soda isles will save a lot of money. There are many lower cost options for nutrition. Side benefit; better health and lowering the cost of health care on society.
Ed P says
Once again, corporate profits are a bad thing? No one is bitching about their 401ks or stock portfolio. I’m certain everyone has the choice of where to shop. I’m certain that many consumers are not smart consumers. And Dennis Berg’s point of veering away from junk food is valid.
Finally a business only does 2 things, it either grows(earns more) or goes out of business. If it doesn’t remodel or evolve (Kmart,Sears, ect) it dies.
Pierre’s comment about net profit of Publix glossed over their 45 new stores opened in 2023, or that they reversed the year over year plummet of 33.9% between 2021 and 2022. Their capital spending was down in 2023, boosting profits.
We can’t look at head lines or listen to sound bites to get the entire story.
endangered species says
you mean the same corporations that get massive tax breaks and have workers on government assistance programs because they dont pay them enough to live?
3 individuals have more money today than 300 million people combined and they pay no taxes. This seems right to you then?
A man can steal a candy bar and go to prison for years. Companies can steal tens of millions from workers and get an interest free payback plan and no one goes to jail. Welcome to our corpo oligarchy.
Ed p says
So is everyone deserving of a living wage regardless of their skill set or work ethics? Should everyone make the same identical wages regardless of their position within a corporation?
I’m not sure who the 3 individuals you speak of but they leveraged themselves, took risks, employed million of people, and earned what they have. The claim that they don’t pay any taxes is just foolish. Corporate tax, real estate tax, employee social security taxes, unemployment taxes, Medicare taxes, and capital gains taxes are paid. They pay sales tax when they spend the plunder you complain about.
They may not pay huge income tax because they earn deferred income based on the success of their enterprise. When they sell stock options, they are taxed at a rate normally lower than income tax, currently 15%. All legal. Ask Congress to change the IRS rules they are abiding by.
And no one goes to jail for stealing a candy bar.
Corporations do not breathe, do not have a soul nor are they living. They are a legal entity.No one is forced to work in the United States. Slave labor and sweat shops have ended. Your outlook of corporations stealing from their workers is incorrect and false.
I’m not even curious what you would replace our current system of Capitalism with, but Margret Thatcher said it best, “The problem with socialism is that you eventually run out of other peoples money.”
Ray W. says
This newer version of Ed P is a good thing for FlaglerLive readers, at least to me. Again, whether I agree with his comments is not important; he is introducing differing and broad ideas worthy of consideration into what is for some an emotional comment thread. No, corporate profits are not bad things. Excessive corporate profits derived from corporate disinformation and misinformation can be a bad thing, and on occasion, an illegal thing. Yes, Publix’s earnings reports show rises and falls over time. I don’t read anyone’s comment in this thread as arguing that Publix or any other corporation should not earn profits.
Let’s look at Mr. Tristam’s comment further up the comment thread. I don’t know if he studied every last facet of the Publix earnings report. He simply pointed out that, on its face, Publix is earning far above the traditional 1-2% that grocers usually consider a reflection of a business model designed to return a moderate to healthy profit margin. It appears that Ed P did do a more in-depth dive into the report, but even he didn’t comment on whether Publix earned a traditional 1-2% profit on its sales when its profits dropped. Mr. Tristam did a good thing. Ed P did a good thing. If Publix releases a report showing a greater than 7% profit-to-sales margin, despite expending the money necessary to open 45 new stores, then can it rationally be argued that Publix has increased product pricing far above what is considered normal in the grocery industry, irrespective of a short-term downturn in the extent of its capital investment. Is it reasonable to argue that Publix’s business model incorporates an unusually high pricing strategy? Is Publix an example of greedflation? Maybe so. Maybe not.
I shop at Publix at least once a week. My 92-year-old aunt has become accustomed to me calling her each Sunday for her grocery list since the pandemic hit. I enjoy the time I spend with her each Sunday afternoon. She likes several Publix products above other products, so I shop there. I watch the sales and get what my wife and I need while I am in the store. I know that Publix charges more for most items, but their sale pricings are OK. I just avoid the grossly overpriced stuff. I don’t buy Publix soda, but I can easily spot just how much less Publix charges for generic soda than it charges for Coke or Pepsi products. I can’t help but wonder whether flavored soda water sweetened with corn syrup costs that much more for the Pepsi or Coke logo glued to the bottle. Bottling costs have to be similar. Transport costs have to be similar. Stocking costs have to be similar. Ingredient costs have to be similar. Who knew that brand-name sodas have to cost more than twice that of the generic sodas?
Getting a more complete, a more comprehensive, story is a good thing, as Ed P points out. I don’t suppose anyone could argue that I don’t try to present a more complete story, a more comprehensive story, in my own comments. I know that the length of many of my comments puts off some readers, but I don’t aspire to accusations of cherry-picking data. I look into reasons why things are happening and try to present those reasons to FlaglerLive readers for their own review. Then again, I spent a significant part of my legal career filing appellate briefs, when a brief in a death penalty case was limited to 100 pages and I used them all. Mr. Tristam has to cover all the news coming from 130,000 Flagler County residents and condense it into a format that readers will accept. That is a tremendous and difficult task, compared to the fact that I could write 100 pages about one defendant’s case. He has to place limits on his own efforts, lest he burn himself out. He seldom covers sports. He seldom reviews restaurants. He seldom writes a socialite column. It’s just too much to ask that one person cover the adventures and misadventures of 130,000 people. That is Ed P’s job. Get the gross overview from Mr. Tristam and let Ed P fill in the gaps. I will fill in the gaps. Laurel and Pogo and so many others will fill in the gaps. So long as a commenter avoids disinformation, avoids misinformation, avoids vengeful ravings, avoids “pestilential” partisan member of faction hyperbole, we are all better off for that filling of gaps. When we devolve into the ravings of the hateful, the vengeful, the spiteful (are you still reading, ASF?), we are all the worse off for having read it.
I remain thankful for Mr. Tristam’s efforts. I don’t always agree with him, either, but I respect him. Perhaps we would all be better off if we respected each other. But how can anyone respect someone who asks when can the beheading of Democrats begin? Who states for political gain that he will slit throats if elected? Who states that he intends to crush vermin? Who states that we need to start throwing protesters off bridges?
We have another six months or so of having to listen to the drumbeat of the delusional commenter. Once this election cycle comes to an end, perhaps commenters like Dennis C. Rathsam and JimboXYZ can be persuaded to admit that the pandemic is responsible for the Trump recession, the nearly $6 trillion in stimulus funding that accompanied the recession, the inflation that directly resulted from the vast infusion of unfunded deficit spending that followed the economic slide of 2020 and 2021, the independent Fed then tightening money supplies by raising lending rates, and on and on. Both administrations bear responsibility for the political and economic response to the pandemic and we see it each week at the grocery store.
.
James says
So you agree then… Publix was never a place to shop for the budget minded. Yes, I too shop at Publix… even to this day. But I must tell you, I never thought their prices were reasonable… and remember, I’m from NYC.
There’s many reasons why folks would shop there, as you’ve mentioned.
One reason I do is that I don’t find it cost effective to travel over to the other side of I-95 just to pick up a loaf of bread at Walmart… although I can get only one loaf at Publix for the same price. By the way, this is store brand bread. Actually, I do prefer the Publix bread to the Walmart bread… and the mayonnaise,butter and a few other miscellaneous store brand items. The “bogos” are probably what the items would have been priced at before markup.
Honestly, they’ve always reminded me of a small grocery chain back in NYC… D’Agostino. Excellent quality, as well as selection… particularly of hard to find, high-end items… but not a place that one could frequent often. If I recall correctly, their stores were mostly located in Manhattan.
As I’ve said, I don’t think it’s price gouging, but as you point out a choice of business model.
Would some say Starbucks is a price gouger? I mean come on folks… “Star-Bucks?”
Just an observation.
Ray W. says
Thank you, James.
I wouldn’t go so far as to say “never” a place for the budget-minded, but Publix has long utilized a business model of very clean and bright stores, a focus on pre-packaged specialty meals, a wide range of quality product choices, and targeted sale items, knowing that getting someone into the store is the major victory.
To me, Publix’s ideal customer is the harried upper-middle class consumer. I raised four children and did almost all of the grocery planning. I grew up with six siblings. Shopping for sales is normal for me, but perhaps not for everyone. I recall, some 20 years ago, shopping at Publix before a large holiday family gathering. As I placed BOGO chicken stock in the cart, a stylishly dressed 30-something woman walked by and grabbed two containers of chicken stock without stopping. She selected cartons from a competing brand right next to the BOGO labels. Her choice was more expensive to begin with. Perhaps she wanted what she wanted. Perhaps she never even noticed the sale label? Perhaps she didn’t have the time to consider saving money and that her shopping approach had become habitual? I will never know. But I have to think that Publix knows of such shoppers and management factors her and others like her into its business model.
Me? I read some time ago that last year’s drought across Europe had impacted olive harvests in Greece, Italy and Spain. I immediately bought more olive oil when it was BOGO at a price lower than other stores. I recently had to renew the stock. The price is up over 25% in less than a year. Some of that might be due to federal fiscal spending policy and inflation, perhaps some of it is Publix knowing it can charge more, but some of it has to be drought related.
Same for beef prices. I commented recently that cattle head counts are at their lowest since 1951, due to two years of drought across our heartland. Herd sizes are rebounding after a wet winter. We will see in time if beef prices drop. The gullible blame the current administration. They are wrong.
James says
“… I wouldn’t go so far as to say never…”
Spoken like a true man of your chosen profession Ray. ;-) :-)
Just an opinion. :-)
Pogo says
@FWIW
Teach your children well
https://www.youtube.com/results?search_query=how+to+play+monopoly
“America is the wealthiest nation on Earth, but its people are mainly poor, and poor Americans are urged to hate themselves. To quote the American humorist Kin Hubbard, ‘It ain’t no disgrace to be poor, but it might as well be.’ It is in fact a crime for an American to be poor, even though America is a nation of poor. Every other nation has folk traditions of men who were poor but extremely wise and virtuous, and therefore more estimable than anyone with power and gold. No such tales are told by the American poor. They mock themselves and glorify their betters. The meanest eating or drinking establishment, owned by a man who is himself poor, is very likely to have a sign on its wall asking this cruel question: ‘if you’re so smart, why ain’t you rich?’ There will also be an American flag no larger than a child’s hand – glued to a lollipop stick and flying from the cash register.
Americans, like human beings everywhere, believe many things that are obviously untrue. Their most destructive untruth is that it is very easy for any American to make money. They will not acknowledge how in fact hard money is to come by, and, therefore, those who have no money blame and blame and blame themselves. This inward blame has been a treasure for the rich and powerful, who have had to do less for their poor, publicly and privately, than any other ruling class since, say Napoleonic times. Many novelties have come from America. The most startling of these, a thing without precedent, is a mass of undignified poor. They do not love one another because they do not love themselves.”
― Kurt Vonnegut, Slaughterhouse-Five
Sherry says
Thank you so much for reminding us of Kurt’s wisdom. . . and your own. . . Pogo!
James says
https://lasvegassun.com/news/2024/apr/29/affluent-americans-are-driving-us-economy-and-like/
Just a thought says
This is why I almost exclusively buy at Mom and Pop retailers. Harris Grocery in Bunnell is the best place to shop. Prices are cheaper than major retailers and the majority of the profits stay in Flagler. The owner do more charity work in this county than most.
T says
Remember when gop voted down Inflation act read people
Protonbeam says
Did you read the inflation act – such a great Democrat tactic – they name something and what’s in the bill has nothing to do with the name because they know morons won’t read the bill – just like when dimocrats branded “don’t say gay” –
The “inflation reduction act” printed yet billions
More in money driving up inflation further –
Civilization just can’t survive when people don’t read and don’t understand basic economic policy
Ray W. says
Interesting comment, Protonbeam.
Can I infer from your focus on the effect any spending of unfunded stimulus money might have on inflation, that you believe that today’s inflation could be related to each of the five stimulus packages approved by Congress in response to the pandemic? Or do you pick and choose among the five packages that were passed to argue that your favorite unfunded stimulus packages were good for inflation and that only one unfunded package was bad for inflation? After all, you focus in your comment on only one of the five unfunded stimulus packages. Why is that?
If I am right in my inference that you believe all forms of unfunded stimulus funding could be bad for inflation, can I also infer that you think that the $2.9 trillion in unfunded stimulus money that was passed by Congress in 2020 and signed into law by then-President Trump was also bad for inflation? That the infusion of almost $5 trillion of the nearly $6 trillion in sum of all of the unfunded federal stimulus spending that was approved by Congress in response to the stumbling pandemic economy was across the board a cause of today’s inflation?
That you agree without reservation that the best way to describe today’s inflationary economy is “Trudenflation”? Or do you not know enough about basic economic policy when you blame today’s inflationary economy solely on Democrats?
A short while ago, out of curiosity, I searched out so-called “conservative” policy views on today’s inflation. I found a September 23, 2023, article published by The Heritage Foundation, which bills itself as an organization that seeks to unite “conservatives” into a cohesive whole on policy issues. I do not vouch for the Foundation’s conclusions, and I don’t necessarily agree with some of the overbroad methodology used to reach its conclusions (classifying 2022 aid to the Ukraine in their total of $7.5 trillion in unfunded stimulus money, for example) nor some of the hyperbole employed by the authors (I think there are many more disparate reasons for today’s inflation than do the authors), but I found the article valid.
One of three key takeaways of the article was described as follows:
“The spending spree from March 2020 to December 2022 led to the worst wave of inflation since the 1970s, fostering a labor shortage and broken supply chains.”
How did The Heritage Foundation title the article?
“The Road to Inflation: How an Unprecedented Federal Spending Spree Created Economic Turmoil.”
What was the Summary?
“The Covid-19 pandemic unleashed unprecedented federal fiscal and monetary actions that wasted trillions of dollars. This reckless and politically opportunistic spending spree has left the U.S. with a weakened economy, an inflation crisis, and a looming debt crisis. The volume and nature of the spending spree helped to create skyrocketing inflation and interest rates and created a labor shortage, reducing household incomes and leaving store shelves bare and supply chains broken. A looming fiscal crisis has shifted from a long-term concern to a current event. Congress must return to responsible governance for America to avoid further economic calamity.”
I ask all FlaglerLive readers: Is it reasonable to argue that since the beginning of the pandemic both political parties bear full responsibility for today’s economy, for good or bad? If the Senate passed the first stimulus package ($2 trillion) by a 96-0 vote and House passed it by a voice vote, and then-President Trump signed it into law in March 2020, and if the same Congress later in 2020 passed a $900 billion stimulus package signed into law by then-President Trump, and if President Biden later signed into law another three stimulus packages totaling some $3 trillion, does that mean that Republicans are responsible in almost equal measure for today’s inflation rate? That the best and perhaps only way to describe those commenters who blame Democrats for today’s inflation is “gullible”?
Laurel says
I really appreciate the fact finding in many of the comments here, thank you. What I won’t let y’all get away with is stating Publix has commonly priced foods. I grew up in Florida, and go back as far as Food Fair! My mom loved Publix so much, that she would actually point out stores when we traveled around Florida as if she was making mental notes should we starve. It’s definitely no longer the same.
We moved here, very close to a Publix, and were happy about that. Now, we use it as if it were a convenience store like a 7-11. I wrote, once before, that I bought an unmarked cabbage head, looked at my receipt when I got home saw that the receipt showed the cabbage was “organic” and cost $8.00! Damn straight I took it back! You can buy a head of cabbage in Bunnell for a buck! Husband and I got tired of walking out of the store with four, little plastic bags of food, costing us $100. So, we started going over the bridge, and manage to buy far more for the same amount of cash, and actually coming homes with meals!
Some say that the quality is not the same. In some cases, that’s true, but not in all. Aldi is German owned, and the Europeans are far more careful with food quality than are Americans. They tend to ban more harmful chemicals that we find acceptable. Aldi also owns Trader Joe’s, and is purchasing several Winn Dixie stores.
So shop where you prefer. Aldi eggs, labeled humanely raised, free range eggs: under $5, Publix eggs labeled free range around $11. Dunkin’ Donuts 12 oz coffee (no more 1 lb) at Publix around $10. On sale around $8. At Target, we found Dunkin’ Donuts 12 oz on sale, two bags for $7. Learned recently that Bucee’s gas is a good $0.50 a gallon cheaper than other stations. What I’m getting at is all is not equal, and is corporate driven.
Sherry says
Good Afternoon Laurel,
In the 18 years we lived in Flagler Beach, after returning to our home state of Florida, we considered Publix is convenient but not a good value. You are right on about Aldi. We have been shopping there (while in Europe) for 20 years. Personally, I was quite happy to see Aldi’s open in Palm Coast to give Publix some serious competition. We even made the trip once a month to San Jose for a Trader Joe’s and Costco run.
I’ve “shopped” for non-perishables on Amazon and found great bargains “delivered” to our door. Another really great on-line frozen food bargain is “Wild Fork”. . . high quality with amazing prices on beef, chicken, fish, specialty meats, even fruits veggies, bread and high end desserts. One annual fee and your deliveries are free!
Bottom line, I worked too hard for my $$ to give it to Publix profits. Shop around. . . but, Publix is hoping you are too lazy to do that.
Laurel says
Publix used to be a very conservative corporation. It was closed on Sundays and I remember a young bag boy getting into a legal battle for wearing an earing to work! So that has changed, but it was still a reasonable place to shop. Then, people started noticing that Publix was becoming expensive, so the stores started placing signs out front comparing their prices with other grocery chains. Now, that’s gone and the pricing went off the charts.
Different companies have different prices, and the gap is not defendable.
On San Jose, there is both Trader Joe’s and Whole Foods. We would hit them both about the same way you did
Then, we found that both stores are close together in Jax Beach too, on A1A. Yea!
Sherry says
Hi Laurel,
Why am I not surprised that you also take the drive to Trader Joe’s. Right On! You really should check out Wild Fork. . . which originated in Southern Florida. I ordered from them about once a month when I lived there, and still do the same here in CA. High quality frozen foods at great prices! They have specialty meats that you simply cannot find in supermarkets. . . my source for duck and ostrich especially.