Sunday, February 27, 2011

Why Wholesale Prices Increase

Newsday has an unsigned article titled: Increase in wholesale prices hints at inflation:

It included:

“Some economists said yesterday that companies are starting to pass those [increased] costs to retailers. That’s likely to increase prices for consumers later this year.”

This is on the Business page. The dope who wrote the headline see hints of inflation just because gas prices have doubled in two years? Hints? When is a hint not a hint anymore?

And where did the other dope who wrote the article find ANY economists who thought that price increases for raw materials only INDICATED companies MIGHT start passing these costs to retailers. And if they passed those costs along, it is LIKELY that the retailers would increase prices to consumers.

Of course, there is no mention of printing money or borrowing money having anything to do with this. The blame goes to “about 40% of the rise in the core index stemmed from higher pharmaceutical prices”. Pharmaceutical prices! The question is whether the pharmaceuticals this dope was using are the legal kind. As long as oil companies, pharmaceuticals, banks and any other company that employs anyone keeps taking the blame, we will make zero progress in correcting this mess.

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