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MS's avatar

This is what happens when a candidate has spent no time working in the private sector.

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Jeffrey L Minch's avatar

The speech you are reacting to is tomorrow and hasn't been given yet. The Harris campaign has been leaking bits of it to focus group the nation's reaction and the MSM.

There is a very simple explanation of more than half (maybe two thirds) of grocery inflation -- the cost of energy to get the foodstuffs to the damn store.

Neither Whole Foods nor Kroger has a dairy farm or a fish pond or a vegetable patch in their parking lot, so everything has to come by truck. Many trucks are refrigerated. These trucks get poorer mileage and you have to power the refrigeration.

Most grocery stores cycle through fresh food 2.5 times per week. It is a constant churn. We recently had a weather disturbance in Savannah and trucks were delayed for 3 days. You could see the shelves becoming barren in front of your eyes and then a day later they were full again.

When the Biden admin began its Day One War on Energy, the cost of transport went up. Just look at gas prices -- Biden spurred the highest gas prices in US history and diesel was even worse.

At the same time, both the Feds and certain states (talking to you, California and Gov Newsom) imposed a plethora of new regulations that had the result of deleting a large portion of the oldest and most cost effective trucks from the marketplace.

If a new POTUS were to immediately get rid of these regulations and spur energy exploration and production -- including nuclear as a replacement for fossil fuel electricity -- the transport component would dampen with the price of gasoline.

Groceries are a very low margin business and it is tied to both import (vegetables and fruits from Mexico as an example); and, it is very competitive.

It is also based on crop timing. I was in Kansas a couple of weeks ago and bought fresh corn -- shucked and packaged -- for $0.25/ear in packages of 4. Why so cheap? Farmers were already harvesting corn locally.

Inflation will not go to zero, but it can go back to 1.4% as it was the last month of Trump's admin. It will take some time, but it definitely can be done.

And, no, the solution does not invove Soviet style price controls on anything. Just discussing that wildly disavowed notion lowers the IQ of the entire discussion.

JLM

www.themusingsofthebigredcar.com

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