Showing posts with label price gouging. Show all posts
Showing posts with label price gouging. Show all posts

Tuesday, November 26, 2024

Resistance is not enough. Democrats have a winnng leg to stand on updated 12/14/2024

 Resistance is not enough. Democrats have a winning leg to stand on that MAGA does not: It is economic fairness, the lack of which is underlying the demise and resentment of the middle class. Such economic populism can work both ways depending upon who gets the blame.  In 2024 Trump won as more voted for cheaper and in 2025 we will get higher prices and much more: inflation per every economist on the planet. The fallout will not only be political, it will be painful for anyone who is price-sensitive. The last time we tried such a stunt was in the early thirties. https://www.investopedia.com/terms/s/smoot-hawley-tariff-act

That is the Democrat's messaging challenge: to make sure the Trump regime gets the blame when inflation happens and health care becomes more expensive again, as the cost of housing keeps on soaring, and grocery prices increase, making the Biden era look like the good old days.

 In fact, if there was one issue that tipped the election to Trump, it was his promise to lower grocery prices. He made a big deal of it in his campaign, he promised he would, polls confirmed that was the reason he won, and now he is already admitting he will have a hard time rolling back grocery prices. In fact, the likelihood that grocery prices will inflate will be due to his tariffs on imports from Mexico and a labor shortage from farm to processing caused by mass deportations. https://www.yahoo.com/news/donald-trump-already-walked-back-221600205.html

Trump says it will be 'hard' to bring grocery prices down. Here's why. Already, Trump is blaming Biden, not COVID-19, not supply chain mess-ups, empty shelves, or stimulus checks causing more demand than supply. As Biden leaves office, grocery price inflation had been near zero for the past year. However, if grocery prices go south, tariffs and immigration  mass deportations will be to blame,. The message must be more than "we told you so," but to tie it to Trump's own actions and deserved blame for whatever happened on his watch.

Update 1/20/2025 WORTH a read if you can getting through the paywall. My thoughts: if the the feds won't do it, states are trying.

To add insult to injury, the billionaire Elon Musk in charge of Trump's current thinking about cutting "duplicative and unnecessary agencies" has just targeted the recently instituted the Consumer Financial Protection Bureau. (CFPB)Unnecessary for whom? Certainly not necessary for a billionaire. Duplicative of what agency? It was set up to do what other agencies had failed to do or had the power to do. Per Google AI, The FTC's Bureau of Productions for Consumer Protection ICFstops unfair, deceptive, and fraudulent business practices by collecting complaints and conducting investigations, suing companies and people that break the law. developing rules to maintain a fair marketplace. I spent over 20 years as an executive with consumer protection agencies, one similar to the CFPB on the local level, and a credit counseling agency (non-profit) , dealing with debt, foreclosure, and local, public, and private agencies attempting to help consumers deal with these kinds of financial problems. However, when we attempted to alert the Federal Trade Commission about a pattern of civil fraud, there was no easy way to do it nor was there a focus at the FTC to deal with consumer complaints.  Musk does not have a clue of how important the Bureau is. Per the bureau:

  • 4 million+ consumer complaints received responses
  • $20.7 billion+ in financial relief as a result of CFPB actions
  • 205 million+ people eligible for financial relief and their current target: credit card and bank junk fees.
 
That is a good reason why billionaires should not be making such policies.https://www.reuters.com/world/us/musk-calls-abolishing-consumer-finance-watchdog-targeted-by-republicans-2024-11-27

 For simplicity in messaging, Democrats can paint the GOP (the Trump version) as the party of billionaires while the rest of us sacrifice what makes our lives easier in order to enable their tax breaks and deregulation.  Perhaps, as others have called this, we could tag this as government by an oligopoly or use the Russian term oligarchs.  Trump is still in charge, however, and he sees a benefit to his ego, the measure of his own wealth and influence. to be part of this peer group, and he owes them for important financing of his 2024 campaign. 

 If there is one policy issue that will cause a backlash by everyone, this is it. High tariffs equal high prices. Such inflation caused low-information voters to switch to Trump. It could also cause them to switch back to Democrats. Trump's campaign promises of reducing costs of living for those on a budget are doomed to failure if he makes prices higher and he sabotages what the middle class has taken for granted, access to affordable health care, consumer protections from corporate greed, and social security and Medicare for those who retire.

. In my early adulthood, the middle class could own a home, send kids to college, mom could be a stay-at-home one, and even maybe take a vacation.  The income dad bought home was sufficient. Their buying power permitted it. Since the 1970's the trend to keep that going slowly died off as tax and perk policies, money (now dark, thanks to Citizen's United) from corporate and individually wealthy billionaires have flowed into the political system, sucking the middle class dry with their favoritism and self-interests. Now, they are the ones, yes, like Elon Musk, whispering in the ears of Trump. So long as Trump delivers on his promise to lower grocery prices, the stock market remains bullish, gas at the pump remains at under $3 and the cost of what the middle class buys becomes cheaper,  no one cares if the oligarchs get richer.

Trump is now doubling down on tariffs on even our largest trading partners: Mexico and Canada, in addition to Asian countries, policies guaranteed to make nearly everything middle-class buys more expensive.  If he continues with that insanity, the backlash will be more than palpable, but Democrats have to be able to seize the day, putting the blame where it belongs, and then make the case in simple terms they can make life better. They failed to do that in 2024. Saying and doing the same way over again won't work. They need to get their messaging methods and content retooled and refocused on what the electorate is feeling at the time.

The  Democrats ' answer should be a return to their roots and re-establishing their historic posture of the party of those who are struggling to make ends meet.  The history of the Democratic party used to be as a champion for those left behind. There is no hypocrisy here and plenty of credibility.   Democrats can make the case in the next four years that rule by the ultra-rich on behalf of their corporate interests may talk the populist grievances and say "they feel your pain," but the walk they walk is just making themselves richer. 

 https://mufticforumblog.blogspot.com/2024/11/elitists-v-simple-speakeducation-is.html

https://mufticforumblog.blogspot.com/2024/11/trumps-achilles-heels-

Elon Musk publicized the names of government employees he wants to cut. It’s terrifying federal workers

https://mufticforumblog.blogspot.com/2024/10/democracy-has-oligarch-problem.html

https://crsreports.congress.gov/product/pdf/R/R42615/6#:~:text=The%20Consumer%20Financial%20Protection%20Bureau%20(CFPB)%2C%20which%20formally%20started,the%20Dodd%2DFrank%20Act).

ttps://www.newsweek.com/will-trumps-tariffs-drive-inflation-1995274

Tuesday, September 24, 2024

Trump the conman is selling consumers a bag of hot air

 Trump, the con man, is selling consumers a bag of hot air. Trump has no plans to lower your prices, but he does have a plan to raise them by 20%. In the last two years of Trump, we had COVID-19, the worst economy since the Great Depression, and Biden got us back to near normal. Harris has a plan to lower families' cost of living and prosecute price gougers.

You have got to hand it to Trump, the salesman of everything from golden sneakers to "Elect me; only I can fix the economy," and the sad thing is that so many are buying it.  Fix what, fix how?  Let's see what people want fixed. Prices?First, a reality check: The last two years of Trump's term was a disaster... the worst economic crash since the Great Depression thanks to COVID.  The first two years of Trump were coasting on the prior Democratic administration with figures similar to what he got handed when he took over. 

 COVID-19 ended, and Biden got handed supply chain backups around the world and pent-up demand.. The old supply and demand impact caused inflation and Ukraine-related oil shortages, causing world prices to soar..and fixing that mess is what he did in 3 and a half years. Thanks to Biden cranking up oil production and alternative sources, we have no crude oil shortage now so Trump's hot air of drill baby drill is just that: fixing something that ain't broke when gas prices at the pump have already come down.. What about grocery prices? He's got no plan to fix that, either.  What do the gullible think? He can waive a magic wand and zap, back to the good ole days? Of course he does not have the power to dictate prices. Where's his plan? Nothing. Nothing at all.

Except: he's got a great plan to make much of whatever you buy at Walmart 10 to 20% more expensive if it's imported.  Look at your clothes labels. You may be shocked how many are imported and and imagine what you bought is 20% more expensive.  Like your winter fruits and veggies from south of the border? Add another 20% to that. That is the tariff effect, and the Trump con man tells you you will not pay it? What a joke: an importer has to pay it when it lands here, and to make a profit, he'll have to make it up somewhere, so he just increases his price to the retailer or distributor for you to pay. (That is what Harris folks call sales taxes to you. Just as well be one; the effect is the same)  Get a grip on yourself: the company importing pays the tariff and just considers it an added cost recovered by raising prices to the retailer or US distributor.  Even big ticket items like electronics and cars will go up, and you get to pay the bill. Toyota, Honda, etc, will just raise their cost to you even for parts that are imported. Without competition from imports, our own producers will be able to raise their prices, too, and gouge away. Then, to add insult to injury, he will sell you a concept for health care, no plan, just a concept. That's just for starters.   At the same time, he signs Project 2025's plans on Day one. https://www.jec.senate.gov/public/index.cfm/democrats/2024/8/how-project-2025-s-economic-policies-hurt-families  Trump says he has not read Project 2025, so believe the con man. He does not have to read it. He just has to sign off on the executive orders and replace thousands of government workers with those who passed the Heritage Foundation ideological litmus test.

In the meantime, Harris has the plan to fix a lot of middle-income budget-conscious people's kitchen table expenses and continue to improve on what Biden has accomplished...and they are not hot air. The highest employment rates in 50 years. Everyone has a job if they want to work; normal economic growth and wages are rising higher than inflation. Big pharma fought, and prescription drug prices lowered. Immigration illegal border crossings are fewer than when Trump left office. The crime rate is lower than in Trump's years. Rip-roaring Wall Street. No oil shortage, and we are now nearing energy independence. Fixed a bunch of bridges and roads, retooled more rust belt with 21st-century industry, and lowered gas at pump prices closer to what they were.. Russian aggression checked. Fed cut interest rates 9/18 as inflation licked.. That is Biden's handoff to Harris.  

Harris has a plan, not concepts, but a plan to lower costs in many different areas that are weighing down those in middle-income, budget-sensitive families. These are not ones based on lies and vague concepts. but in reality. https://www.cnbc.com/2024/08/16/kamala-harris-economic-policy.html


Note: econ 101. No or low tariffs help US consumers and the economy. High tariffs may protect some industries and jobs, but not if an angered country like China retaliates and puts their high tariffs on our agriculture exports to them. That is what happened in the Trump administration and Trump had to pour subsidies to farmers to pay them for their lost exports.  https://taxfoundation.org/blog/tariffs-trade-war-agriculture-food-prices/      

https://www.usatoday.com/story/news/politics/elections/2024/09/15/trump-inflation-tariffs-economists/74958539007/

https://www.cbsnews.com/news/trump-economy-nobel-prize-winners-letter-inflation-warning/

https://www.imfromdenver.com/trending/king-soopers-caught-red-handed-shocking-admission-of-price-gouging-in-colorado/

Thursday, March 21, 2024

Crony capitalism: MAGA's threat to consumer product safety and consumer protections

 Core to MAGA plans, if they win in November 2024, is to upend US free market capitalism and replace it with crony capitalism, which is regulated and supported by political loyalists with their allegiance not to the rule of law but to Trump and his think tank planners at the Heritage Foundation.  Project 2025, a Heritage Foundation think tank plan already poised to be executed upon Trump's election, proposes to fire and replace thousands of civil servants with political loyalists.  The result will be a blow to consumer safety, the environment, finances, and prices, as Trump proposes charging a 10% import fee, which will be passed on to consumers. Wait, there is more. 

Trump has a history of sabotaging consumer and environmental protections: https://mufticforumblog.blogspot.com/2018/05/trump-economic-unpopulist.html

Update 5 17 2024: One of the most significant upgrades to consumer protections is contained in the watchdog over consumer finance, was upheld by the Supreme Court but still faces defanging by MAGA  https://www.reuters.com/legal/despite-consumer-watchdogs-us-supreme-court-win-agency-powers-still-chopping-2024-05-17

Update: 5 12 2024 Crony capitalism is also a characteristic of modern dictatorships, from Hungary to Russia. Perhaps a better word is the Russian one for crony capitalists:  Oligarchs.  

https://www.reuters.com/world/us/trump-again-attacks-new-york-prosecutor-floats-economic-plans-new-jersey-rally-2024-05-12/

Update: 4 9 2024: The company Trump keeps and to whom he owes, and his record of a fraudster means heads up for consumers. He is not your friend. The businessman Don Hankey, who provided the money for Donald Trump's $145 million bond, has a reputation as what we used to call in a white collar prosecutors unit a high-risk loan shark, a lender of last resort, and a repo man in car loans who got rich providing loans to high-risk customers and charging fees skating usury.  His practices are not consumer-friendly, to put it mildly, and has had run-ins with regulators. Trump owes him a big one since, given Trump's practice of going bankrupt and court processes around fraudulent business practices that bring into question Trump's financial worth, make him a high-risk borrower. Trump claimed he could not find anyone to give him the bond he needed as he appealed a $400 plus judgment for financial fraud. Hanky and Trump deserve one another.  https://projects.apnews.com/features/2023/trump-investigations-civil-criminal-tracker/index.htmlm  https://www.cbsnews.com/news/trump-don-hankey-billionaire-175-million-bond-who-is-he/  He also defanged the new financial consumer protection bureau. https://www.npr.org/2018/02/12/584980698/trump-administration-to-defang-consumer-protection-watchdog

https://www.nbcnews.com/business/business-news/billionaire-don-hankey-trump-175-million-bond-subprime-car-loans-rcna146232

Original posts continue:

Crony capitalism is a feature of every autocracy from Hungary to Russia. Crony capitalism is institutionalized corruption.  In fact, that is how Viktor Orban accumulated is political power with promises and favoritism to loyalists. . It is the same model that CPAC and Trump salivate after and advocate to install if elected to power. Instead of "keeping us safe at any speed," regulatory law will decide who and which businesses have proved their loyalty, either in campaign contributions or in loyalty pledges, and how towed to the party line. The standard in crony capitalism is no longer market competition based upon the survival of those with best practices. and price/value fair standards within regulatory constraints even their competitors are bound to obey. There is no level playing field where all must abide by the same rules. Instead, it is based on the favoritism given to businesses that have paid for in political contributions or sworn to loyalty to their regulators.

 Those who have faith that the medication they take they can afford and they are warned of side effects and labels and advertising cannot lie will be destroyed if the decisions favor manufacturers and producers who are looking after their self-interest and profit instead of having to toe the line of regulations designed to protect consumers from being ripped off or endangered.  That anti-trust action to protect consumers from price gouging and price fixing. Truth in labeling and disclosure requirements will be ruled by those who have shown loyalty to MAGA and Trump.    That affordable access to health care and prescription drugs by MAGA and Trump, already advocating the end of Obamacare and cutting Medicare and Medicaid, will now be decided by MAGA loyalists who have already promised to cut,  subvert, or end them.  

One of the dumbest and most harmful proposals by Donald Trump is to slap a 100% tariff on every import care. This means that to cover the import costs and keep their profit margins, manufacturers will simply increase the cost of the imports to customers or go out of business..  that will not only kill off the import market, but it will also give cover for domestic car manufactures to raise their prices too, and still be lower than the import competition.  

Even more profound, foreign and domestic investors who counted on the stability of the rule of law provided them will no longer see the US as a stable place to put their money and invest in improvements or that the free market will even be the level playing field in which they can compete. Instead, their advantages will go to the loyalists, not those whose price, manufacturing efficiency, and consumer appeal have the advantage in a free market system. 

Felicia Muftic is the author of the Colorado Consumer Handbook and has a career spent in prosecution, regulatory agency oversight,  and consumer advocacy of consumer protection and support of ethical business practices and practitioners.   She is also the president and principal partner of a small business subject to FDA and FTC rules and regulations. She appreciates the level playing field in a competitive business environment. 

https://mufticforumblog.blogspot.com/2023/08/how-heritage-foundation-plans-to-turn.html

https://mufticforumblog.blogspot.com/2024/03/grocery-price-inflation-biden-is-taking.html

https://fortune.com/2024/03/16/trump-100-tariff-for-cars-made-in-mexico-by-chinese-firms/

https://mufticforumblog.blogspot.com/2024/01/victims-of-trump-v-2-would-be-us.html