NY Federal Reserve finds a ‘significant share’ of companies saying they raised prices on goods not a

Not surprising at all. Same thing happened during post Covid supply crunch. Corporations used the situation as an excuse to raise prices across the board, and now they are doing the same using the trade wars as an excuse.

NY Federal Reserve finds a ‘significant share’ of companies saying they raised prices on goods not affected by tariffs
https://www.msn.com/en-us/money/mar...s&cvid=9c74868233c341cd904cfa0ec4b97a92&ei=19

• As businesses pass down the cost of tariffs to consumers in the form of raised prices, the New York Federal Reserve found that as of last month, many businesses were also raising prices on products unaffected by the levies. Economists said these pricing choices are taking advantage of the uncertainty of unpredictable tariffs, but could also worsen the potential for inflation.

Not only are companies ratcheting up prices of imported products to offset the cost of tariffs, they’re also raising the cost of goods unaffected by those taxes, a New York Federal Reserve survey and Beige Book report released Wednesday found.

 

So much winning.......

US layoffs spike nearly 50% as DOGE-driven cuts take center stage
https://www.msn.com/en-us/money/oth...s&cvid=a4511149cda74c60bb11146ef3a1da6a&ei=16
Global outplacement Challenger, Gray & Christmas released a report Thursday that said there were 93,816 job cuts announced by U.S. employers in May. That amounts to an increase of 47% from 63,816 announced last May, while last month's figure was down 12% from 105,441 cuts in April.

That brings the total number of job cuts announced this year to 696,309 – an increase of 80% from the 385,859 jobs cut in the first five months of 2024. This year's total is just 65,049 job cuts away from matching the 2024 annual total.

"Tariffs, funding cuts, consumer spending, and overall economic pessimism are putting intense pressure on companies' workforces. Companies are spending less, slowing hiring, and sending layoff notices," said Andrew Challenger, senior vice president of Challenger, Gray & Christmas.

 

And you're surprised?

 

Not at all. When government takes over economic activity, things always go South

 

Trump told us there would be some pain initially. Sometimes it costs to get rid of bad players and cheaters. They're parasites that have embedded themselves like ticks in our economic skin. Yankin' 'em will smart a bit.

 

Or, or... they are spreading out the pain to survive. If they only raised the prices of the tariffed goods then people just would not buy those items and they would be stuck with items that also cost a lot.

 

What pain? Tariffs would make you, me, and businesses rich according to Trump.

 

Businesses don't need or use excuses to alter prices. They respond to competition and overhead. If a company raises or lowers prices it will be temporary unless competition and overhead allow it and require it. Competition is the root of capitalism. Government meddling simply upsets the balance that competition creates.

 

Maybe they dont need to, but they often do, when they know they can do it without consequence

Well, we are seeing more government meddling now than ever before. The trade war is government meddling on steroids.

 

If they get away with it then it is only temporary. Competition corrects these things automatically and pretty quickly. I've changed prices on my web site and seen competitors match them in a matter of hours.

Government is meddling with tariffs, not trying to run businesses. Businesses have to react to what government does but they decide how to react. The problems occur when government gets involved in trying to manage the reaction. Hope that helps. Whatever government does, including tariffs, affects all of business and competition levels the effect. It is how capitalism works. We do not have a government managed economy.

 

Competition is being removed from the equation. That's what tariffs do.

We are going towards government managed economy very fast.

Reagan on tariffs.

 

And you believe them . . .

 

Funny how inflation went to a ten year low. Data doesn't seem to back OPup.

 

Could it perhaps be caused by other factors, such as rising costs due to inflation?

You seem to be having a one-track mind, viewing all price increases as being a result of Trump's tariffs (or worse, the Left's imagined so-called "corporate greed"). If we're being honest, that is completely inaccurate.

Let's rewind just one or two years, before Trump's second term, and look at inflation levels and what the budget deficits were.

And let's consider how businesses have been being bulldozed to make way for high density housing developments, in many areas. Increasing population is creating shortages of space and driving up rents and land prices. So high immigration levels have gotten to the point where they are creating increasing costs for businesses.

 

Trump suspended many of the tariffs for three months. And businesses pre-ordered much of their imports in an attempt to buy before the tariff increase.

 

And a fellow Trump supporter wrote in the post before yours "Funny how inflation went to a ten year low. Data doesn't seem to back OPup."

 

Yes, it can be many reasons.

Um.....no. And it's not me, it's the NY Fed. Are you arguing corporate greed doesn't exist? I can assure it exists, and I can assure you that maximizing profits is the very central idea behind running a business. When I had a business I ALWAYS wanted to maximize profits.

PS You brought up Trump, not me.

This is not about budget deficits. Inflation is a reason why prices go up, and when prices go up for ANY reason, many corporations increase their prices even when they are not impacted by inflation, or other reasons. Blaming inflation is used as an excuse. And now corporations are cancelling bonuses and salary increases using the "economic instability" as an excuse.

 

Trump the consummate parasite, and his promises remain as empty as ever. He is economically illiterate. He does not even know what tariffs actually are, dude, so how am I supposed to trust what he has to say about them . . . especially since I can only think of two economists on his side . . . one works for him, and the second one is a fake identity invented by the first.

 

I know Trump is often viewed as a sort of "charlatan", but in my opinion the Democrats (or I should say what the Democrat Party has become over the last 24 years) are even greater charlatans when it comes to economic issues than Trump.

And you don't seem to realize that every dollar in tariffs collected will not cause more inflation if it helps brings down the budget deficit.

As I told you countless times (which you seem to ignore), the issue comes down to how much money government spends. You will end up paying for that in higher prices either way. Whether government prints the money and causes inflation, or whether higher taxes increase the cost of goods that America imports from other countries.

You people want something for nothing and seem to imagine government can spend money and it won't cost anyone anything.

 

They cause more inflation even when they don't add to the budget . . . and they are the least efficient way we could add to the budget. By far. Your feelings about Dems are completely immaterial. No single Democrat comes close to Trump in this regard. He ran a fraudulent "university," a fraudulent "charity," screwed over Atlantic City with his idiocy, is currently running a crypto scam and accepting money from foreign governments without Congressional approval, and he ran a criminally fraudulent real estate empire.

 

And you don't see any connection between budget deficits and inflation ??

And this would not have happened with Kamala's corporate tax increases that she said she would try to push through ?

 

I don't want to derail this discussion in an off-topic direction, but for comparison it's only fair to point out the university which the Clintons ran was objectively even more "fraudulent".... something I don't think anyone disputes.

(Hillary Clinton would have been president if Trump had not been the one to win the election in his first term)

 

I'll concede Trump's "crypto" venture is incredibly gimmicky and borders on a scam. But then again, that could be said to be true of all cryptocurrency.

This idea appeals most to Democrat men on the Left, that anyone can just create money out of thin air and people can get wealth from nothing. You don't see a lot of conservatives buying into this crypto frenzy.
I think by launching this crypto venture, Trump is trying to appeal to men who might vote Democrat.
I can guarantee you Trump isn't "investing in crypto" personally.

But how about we try to stay on the topic? This thread isn't about allegations against Trump, and we are still on page 1.

 

If you say so. You voted for her, not me. I believe any increase in operating cost will be passed on to the consumer, but it does not look like you understand the topic here. The point is that corporations often hike prices even when there are no increase in operating costs. They use the overall prices increases as an excuse to increase theirs too. Is this really news to you?

It doesn't have anything to do with political parties. It's just another way to make money out of speculation, just like the stock market.

 

I'm baffled by that nonsensical comment.

If you want to make that argument. But I think there in fact have been some big increases in operating costs for businesses.

(If we're talking about insurance companies, that's another topic. A lot of insurance companies permanently pulled out of the markets in certain states due to financially devastating natural disasters and in some cases excessive state regulations and government price-fixing. That left less competition, and the remaining one or two companies that remained in the state could jack up prices or provide really poor service since people did not have other options)