• oxjox@lemmy.ml
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    8 months ago

    You expect prices to decrease when demand increases? I would expect the FTC to have taken an economics 101 class.

    I was hoping for a little better reporting in this story, like why does “the FTC report suggest the grocery companies were also price-gouging consumers”, but this turd is to be expected from a Gannett-owned organization.

    • girlfreddy@lemmy.ca
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      8 months ago

      Here’s the report.

      https://www.ftc.gov/reports/feeding-america-time-crisis-ftc-staff-report-united-states-grocery-supply-chain-covid-19-pandemic

      And here’s the why …

      Notably, consumers are still facing the negative impact of the pandemic’s price hikes, as the Commission’s report finds that some in the grocery retail industry seem to have used rising costs as an opportunity to further raise prices to increase their profits, which remain elevated today. Source

      • oxjox@lemmy.ml
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        8 months ago

        I appreciate the link to the report.

        This just further enforces my belief that the FTC doesn’t know much about economics. When there’s a high demand and limited supply, prices increase. The increase in retail costs, inflation, is used to limit consumer demand. Of course their profits are going to increase; that’s how economics works. There’s nothing in this report that seems inappropriate.

        I think they’d have better luck attacking the CEOs who are pocketing increasingly inflated salaries and bonuses.

        • glimse@lemmy.world
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          8 months ago

          This comment just enforces the belief that you don’t understand the economy. A temporary small bump in cost during covid due to supply chain issues would be a supply and demand issue but if you’ve noticed, the bump was not small and it has continued ever since.

          You don’t get to make record profits and then blame prices on the pandemic. If it was solely due to natural inflation, profits would be similar to past years.