As the discourse around Trump's tariffs continue, I worry that in the focus on how such tariffs are anti-consumer and likely to worsen inflation, we risk overlooking an even more fundamental truth:
If a company raises its prices, the most likely explanation is that they thought they could maximize profits that way. Just as that is the most likely explanation for why a company does anything.
I fully believe that our failures to address the risk posed by bird flu is having a strong impact on our supply of eggs. I also remember that egg producers have been caught working together to fix egg prices. Just as I remember the soaring profits so many other companies experienced as we continued to discuss how COVID impacted the supply chain. And so I believe that such changes in supply and the costs of the supply are as likely to be an excuse as they are an explanation for increases in price.
I'm reminded of something Richard Wolff said on the subject of inflation on his podcast: He basically explained that any company worth a damn that produces and/or manufactures a product is going to have people whose job it is to try to get supplies at the cheapest cost possible. These people have no doubt have learned through their years of experience how to exert pressure, change where and who they buy from, and various other tricks in order to keep costs as low as possible. If such people, in the face of tariffs, immediately say, "There is nothing we can do but eat this cost, and allow our profit margins to fall", they are likely to be fired and replaced that day.
So yes, Trump and his regime are idiots. But let's not keep letting corporations off the hook when prices inevitably rise.
If you see a change in price, assume that it is price gouging until proven otherwise. Assume that the company could have avoided or absorbed any changes in costs due to tariffs and decided to pass on the costs to you instead. If you can refrain from making a purchase for awhile, do so. If there is a competitor that is offering cheaper prices for a similar product (taking Shrinkflation into consideration), use them instead.
Do what you can to exert pressure on companies to stop playing these games.
