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SilasX t1_jcy6i66 wrote

Reply to comment by gofatwya in Dollar Tree can't afford to sell eggs anymore by halxp01

I don't like appealing to "want to increase profits" as an explanation for price increases. They are always wanting to increase their profits, so it doesn't help explain any particular price surge.

Generally what stops arbitrary price increases is the fact that it draws competitors into the market. So if you see them succeeding in increasing profits, it's because said competitors can't or won't, and if they can't, then that's rightly called a legit supply shock.

Now, if there were actual cartel schemes to hold supply down (the "won't" branch), that would be a valid explanation for malevolent price increases, but even then, that mechanism should be what you're appealing to, not "lol greed".

Edit: Economically ignorant people in this thread, don't bother.

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RSomnambulist t1_jcy84l5 wrote

This hasn't been true since the pandemic. The supply crunches have been used to obfuscate margin increases as a test to see what the market will allow before they react. We've proven that we'll keep buying and throw nearly all the blame at inflation and supply chain regardless of it often being the smallest part of a particular items inflation. This is true of most food stuffs increases to prices.

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SilasX t1_jcy8o4i wrote

Like I said, that doesn't work generally because of competition. If you have actual concrete evidence of cartelization, then you can cite the evidence of that.

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RSomnambulist t1_jcy93by wrote

Cargill and Tyson for one. Both companies are keeping chicken prices artificially high and reaping huge margins.

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SilasX t1_jcy97t6 wrote

That's not evidence of cartelization. Again, what changed so that they couldn't or wouldn't do this in 2018, or 2009, or ...?

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[deleted] t1_jcyqzfn wrote

[deleted]

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SilasX t1_jcyr8rs wrote

That's the same thread, and didn't answer the question there either.

Edit: lol blocked for applying basic economics. You guys sure are thin-skinned.

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[deleted] t1_jcyrf8u wrote

[deleted]

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SilasX t1_jcyrrta wrote

What changed in terms of cartelization. "The pandemic is what changed" is consistent with the (more probable) supply shock explanation. Again, why not do it in e.g. 2009 when they could have "obfuscated" it with swine flu?

Again, they're always greedy. Why isn't competition restraining it this time?

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gofatwya t1_jcyw4i0 wrote

Not everyone who disagrees with you is ignorant.

They just have different opinions, buddy.

Get over yourself.

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Rosebunse t1_jcysd7t wrote

If supply problems are a thing, stores just don't get the product.

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SilasX t1_jcysmh3 wrote

Okay thanks for confirming you don't know what you're talking about -- would have saved time to say something like that before though.

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Rosebunse t1_jcyu8yy wrote

Dude, we know it is mostly the profit margins at this point

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