Biden's Legacy: Higher prices, less quantity, lower quality

[Votto]

We have to address the elephant in the room, rent seeking. First, all income is taxed the same. Ronald Reagan was a strong proponent of that very concept. Second, stock buybacks should be eliminated, as they were prior to Ronald Reagan. It is market manipulation, plain and simple, and it needs to be stopped.

The entire world is suffering from inflation. To ignore how the world economy was shut down that caused inflation, is a mistake, so is the worldwide war on fossil fuels that also cause inflation. Spending also is a culprit. You put them all together, and here we are!

Was it all Joe Biden's fault? No, but he is supported by the folks that did this and he supports them. Trump also participated.

 

[JGalt]

Why weren't they gouging before? Why wait until now?

Because those mean old capitalists are colluding with Donald Trump to make president Biden look bad.

It's a conspiracy, I tell ya.

 

[JGalt]

The entire world is suffering from inflation. To ignore how the world economy was shut down that caused inflation, is a mistake, so is the worldwide war on fossil fuels that also cause inflation. Spending also is a culprit. You put them all together, and here we are!

Was it all Joe Biden's fault? No, but he is supported by the folks that did this and he supports them. Trump also participated.

Remember back in 2022 when our inflation rate was 9.1%?

Look at the inflation rate the IMF was reporting for these countries during the exact same time:

Bahrain - 3.5%
Benin - 5%
Bolivia - 3.2%
Brunei - 2.5%
Cambodia - 5.2%
China - 2.2%
Ecuador - 3.2%
Eswatini - 4.9%
Fiji - 4.7%
France - 5.8%
Gabon - 3.5%
Grenada- 4.5%
Hong Kong - 1.9%
Indonesia - 4.6%
Israel - 4.5%
Japan - 2%
Kuwait - 4.3%
Libya - 5.5%
Macao - 2.5%
Maldives - 4.3%
Micronesia - 5.8%
Nauru - 2%
Niger - 4.5%
Norway - 4.7%
Oman - 3.1%
Panama - 3.9%
Philippines - 5.3%
Puerto Rico - 4.4%
Qatar - 4.5%
Saudi Arabia - 2.7%
Seychelles - 4.1%
Singapore - 5.5%
Solomon Islands - 3.7%
Switzerland - 3.1%
Taiwan - 3.1%
Trinidad - 5%
United Arab Emirates - 5.2%
Vanuatu - 4.6%
Vietnam - 3.8%

 

[Winston]

Poor Joe and Jerome, no matter what they do, corporations can cause inflation
by simply raising prices at the same time. DURR

You ain't tits on a boar hog. I am quite sure you are unaware of the fact that, back in the 70's. companies had to report on their SEC filings the profits they attained due to inflation.

But come on, this ain't rocket science. You make a widget. It cost a buck to make. You sell it for a buck fifty. But then, inflation hits, and it now costs you a buck and a dime to make. You raise the price to two bucks. Does that exacerbate inflation? Do I need to send you a link to the definition of exacerbate? Inflation increased your costs by ten percent but you raise your price by 33%. What does that do to your margins? What does that do to your profits? And just for shits and giggles, what does it do for your contribution. Whoosh, just flew right over your head.

 

[Toddsterpatriot]

You ain't tits on a boar hog. I am quite sure you are unaware of the fact that, back in the 70's. companies had to report on their SEC filings the profits they attained due to inflation.

But come on, this ain't rocket science. You make a widget. It cost a buck to make. You sell it for a buck fifty. But then, inflation hits, and it now costs you a buck and a dime to make. You raise the price to two bucks. Does that exacerbate inflation? Do I need to send you a link to the definition of exacerbate? Inflation increased your costs by ten percent but you raise your price by 33%. What does that do to your margins? What does that do to your profits? And just for shits and giggles, what does it do for your contribution. Whoosh, just flew right over your head.

But come on, this ain't rocket science. You make a widget. It cost a buck to make. You sell it for a buck fifty. But then, inflation hits, and it now costs you a buck and a dime to make. You raise the price to two bucks. Does that exacerbate inflation?

How can that exacerbate inflation?

Inflation increased your costs by ten percent but you raise your price by 33%

10% inflation? I bought 100 widgets last year, for $150. If I spend 33% more on your widget,
$200, I have $50 less to spend on my other needs. Inflation is a rise in the general price level,
not on one good.

 

[Winston]

First, all income is taxed the same. Ronald Reagan was a strong proponent of that very concept.

We should end double taxation?

Second, stock buybacks should be eliminated, as they were prior to Ronald Reagan. It is market manipulation

Unless they are buying and selling and buying their stock, it isn't manipulation.
If you think it's bad, as a current shareholder, when a buyback occurs, sell your shares.
If you think it's good, buy more. If you don't own any, mind your own business.

You continue to demonstrate your ignorance. "Double taxation" is a stupid ass claim. Dammit, I bought some groceries today. Damn, had to pay a sales tax, and God Dammit, I already paid tax on my income, now I am taxed again. Double taxation. Are you proposing we eliminate the sales tax? Hell, I am right there with you. If not, then STFU about "double taxation" for assholes collecting dividends. And shit, thanks for reminding me, I am logging on to pay my property tax with money that was ALREADY TAXED. Jesus Christ but the stupid here.

And for the love of God, what do you not understand about stock buybacks? Yes, it is market manipulation. Again, I hate to fly over your head but here is the deal. Executive compensation is often tied to stock prices. And here is the thing, when a company grants stock options to executives, when they pay for those options, it doesn't have to be reported on the income statement. That is some fawked up shit. So Mr. CEO has an option to buy the stock at ten bucks a share. The company initiates a buyback and the share price jumps to twenty bucks. The executive exercises the option for ten thousand shares. That costs the company a hundred grand but it doesn't even have to be placed on the income statement.

And what you can't comprehend is that stock buybacks are the very definition of rent seeking. Remember, rent seeking is attempting to garnish more of the pie that is already there rather than making more pie, and it entails expending resources to achieve that objective. In the case of stock buybacks, the resources expended are the assets dedicated to buying back the stock. And for what, to make more pie? Hell no, to take more of the pie that is already there. Usually for the benefit of the executives who's compensation is based on the stock price.

And, at its very core, a stock buyback is the open admission of the company that they don't have any viable investment opportunities and therefore are giving back the money to their shareholders. While a simpleton like yourself might consider that advantageous, I got to wonder, why the hell did you invest in the company to start with? The buyback is an open admission that you would have been better off to place your money somewhere else.

 

[Winston]

But come on, this ain't rocket science. You make a widget. It cost a buck to make. You sell it for a buck fifty. But then, inflation hits, and it now costs you a buck and a dime to make. You raise the price to two bucks. Does that exacerbate inflation?

How can that exacerbate inflation?

Inflation increased your costs by ten percent but you raise your price by 33%

10% inflation? I bought 100 widgets last year, for $150. If I spend 33% more on your widget,
$200, I have $50 less to spend on my other needs. Inflation is a rise in the general price level,
not on one good.

Damn, talk about doubling down on stupid. If your costs rise by ten percent and you increase your price by 33%, well hell, even a fourth grade math student can figure that shit out, Seriously, you need to google "exacerbate".

And please, don't even attempt to preach to me that inflation is about general price levels. I mean right off the bat, you have no clue has to the concept of elasticity of demand. But, what about the price of televisions, the price of eggs, the price of ground beef, the price of gasoline? Currently, inflation is driven by the increase in rents, and in services, which has always been a lagging indicator. But WTF, you are a flippin idiot and I am yelling into a well.

 

[Toddsterpatriot]

You continue to demonstrate your ignorance. "Double taxation" is a stupid ass claim. Dammit, I bought some groceries today. Damn, had to pay a sales tax, and God Dammit, I already paid tax on my income, now I am taxed again. Double taxation. Are you proposing we eliminate the sales tax? Hell, I am right there with you. If not, then STFU about "double taxation" for assholes collecting dividends. And shit, thanks for reminding me, I am logging on to pay my property tax with money that was ALREADY TAXED. Jesus Christ but the stupid here.

And for the love of God, what do you not understand about stock buybacks? Yes, it is market manipulation. Again, I hate to fly over your head but here is the deal. Executive compensation is often tied to stock prices. And here is the thing, when a company grants stock options to executives, when they pay for those options, it doesn't have to be reported on the income statement. That is some fawked up shit. So Mr. CEO has an option to buy the stock at ten bucks a share. The company initiates a buyback and the share price jumps to twenty bucks. The executive exercises the option for ten thousand shares. That costs the company a hundred grand but it doesn't even have to be placed on the income statement.

And what you can't comprehend is that stock buybacks are the very definition of rent seeking. Remember, rent seeking is attempting to garnish more of the pie that is already there rather than making more pie, and it entails expending resources to achieve that objective. In the case of stock buybacks, the resources expended are the assets dedicated to buying back the stock. And for what, to make more pie? Hell no, to take more of the pie that is already there. Usually for the benefit of the executives who's compensation is based on the stock price.

And, at its very core, a stock buyback is the open admission of the company that they don't have any viable investment opportunities and therefore are giving back the money to their shareholders. While a simpleton like yourself might consider that advantageous, I got to wonder, why the hell did you invest in the company to start with? The buyback is an open admission that you would have been better off to place your money somewhere else.

"Double taxation" is a stupid ass claim.

You want to tax corporate earnings twice.

Damn, had to pay a sales tax, and God Dammit, I already paid tax on my income, now I am taxed again. Double taxation.

If you bought groceries with your dividends, it's triple taxation!!!

That is some fawked up shit. So Mr. CEO has an option to buy the stock at ten bucks a share. The company initiates a buyback and the share price jumps to twenty bucks.

My shares doubled in price? Good job Mr. CEO!

The executive exercises the option for ten thousand shares. That costs the company a hundred grand but it doesn't even have to be placed on the income statement.

PwC says it should be.......

And what you can't comprehend is that stock buybacks are the very definition of rent seeking. Remember, rent seeking is attempting to garnish more of the pie that is already there rather than making more pie, and it entails expending resources to achieve that objective. In the case of stock buybacks, the resources expended are the assets dedicated to buying back the stock. And for what, to make more pie? Hell no, to take more of the pie that is already there. Usually for the benefit of the executives who's compensation is based on the stock price.

My stock price didn't also go up when the price went from $10 to $20?

And, at its very core, a stock buyback is the open admission of the company that they don't have any viable investment opportunities and therefore are giving back the money to their shareholders.

I guess they could use the money to build a conglomerate, like in the good old days.
If dividends weren't double taxed, maybe they'd pay more dividends instead?

The buyback is an open admission that you would have been better off to place your money somewhere else.

And shareholders who aren't happy with the buyback are free to do exactly that.

 

[Toddsterpatriot]

Damn, talk about doubling down on stupid. If your costs rise by ten percent and you increase your price by 33%, well hell, even a fourth grade math student can figure that shit out, Seriously, you need to google "exacerbate".

And please, don't even attempt to preach to me that inflation is about general price levels. I mean right off the bat, you have no clue has to the concept of elasticity of demand. But, what about the price of televisions, the price of eggs, the price of ground beef, the price of gasoline? Currently, inflation is driven by the increase in rents, and in services, which has always been a lagging indicator. But WTF, you are a flippin idiot and I am yelling into a well.

Damn, talk about doubling down on stupid. If your costs rise by ten percent and you increase your price by 33%, well hell, even a fourth grade math student can figure that shit out, Seriously, you need to google "exacerbate".

Sounds like everyone in your example can raise prices by 33% and inflation only hits 10%.
Neat trick! Maybe you should google "Durr"?

And please, don't even attempt to preach to me that inflation is about general price levels. I mean right off the bat, you have no clue has to the concept of elasticity of demand.

When I raised my prices by 33%, people bought less? So my portion of GDP fell.
My contribution to "general price levels" shrank. Someone who kept their price the same
sold more and their contribution to "general price levels" increased.

I guess that's why corporations can't all just hike prices without a corresponding increase in the money supply. Weird.

 

[Toddsterpatriot]

Damn, talk about doubling down on stupid. If your costs rise by ten percent and you increase your price by 33%, well hell, even a fourth grade math student can figure that shit out, Seriously, you need to google "exacerbate".

And please, don't even attempt to preach to me that inflation is about general price levels. I mean right off the bat, you have no clue has to the concept of elasticity of demand. But, what about the price of televisions, the price of eggs, the price of ground beef, the price of gasoline? Currently, inflation is driven by the increase in rents, and in services, which has always been a lagging indicator. But WTF, you are a flippin idiot and I am yelling into a well.

And please, don't even attempt to preach to me that inflation is about general price levels.

 

[80zephyr]

You ain't tits on a boar hog. I am quite sure you are unaware of the fact that, back in the 70's. companies had to report on their SEC filings the profits they attained due to inflation.

But come on, this ain't rocket science. You make a widget. It cost a buck to make. You sell it for a buck fifty. But then, inflation hits, and it now costs you a buck and a dime to make. You raise the price to two bucks. Does that exacerbate inflation? Do I need to send you a link to the definition of exacerbate? Inflation increased your costs by ten percent but you raise your price by 33%. What does that do to your margins? What does that do to your profits? And just for shits and giggles, what does it do for your contribution. Whoosh, just flew right over your head.

Raising prices doesn't happen in a vacuum. Other widget manufacturers will keep their profit margin lower to steal business from someone who raises the price of a good or a service too much. Its the way capitalism works.