WPCNR THE SUNDAY BAILEY. News & Comment by John F. Bailey. March 6, 2022:
That was the price of a gallon of unleaded regular at Sunoco in Peekskill NY Saturday afternoon on March 5.
Is our besotted, distracted leadership in Washngton in both houses of congress, the White House the Supreme Court jesters in their marble columned sanctuary of isolation and pontification, and the Federal Reserve stat followers, aware of what this self-inflicted inflation virus is doing to every day Americans? Right here right now?
Take gasoline alone.
Companies in the New York metropolitan area want workers to come back to work and end zooming employment. Well, to do that the vast majority have to drive. Another myopic organization the MTA feels the high price of gas will bring covid-fearful workers back to mass transit. Maybe, baby.
The higher gas goes the more it will constrict the economy.
Gas isn’t the only thing going up.
The cost of obtaining needed products according to the inflation watchers is up 25%.
The precious recovery that the politicians are once again jawboning about making possible by lifting covid prevention mandates with vows of reinstituting covid restrictions if the virus spreads again will skid to a deflating halt.
That will kill the recovery if there really is one going on.
The recovery will stop because with inflation on necessities, gas, fuel oil, heating oil, inflated “Delivery” expenses of electricity, especially in the summer heat wave that’s sure to come.
Yet, the only people talking about inflation are opponents of the Democratic majority in congress.
Inflation is the signature rhetoric of a Republican Party as out of touch with reality as the Democrats.
If American businesses continues ratcheting up price of their goods to maintain their profit margins in the face of demand, whining they have a lack of supply of critical components of the products, oh, that is O.K.?
Where is the congressional committee on that issue?
Do we really think a 1% rise in interest rates will stop inflation? Please, it is money to be paid back later by companies in the future meanwhile we face Wiemar Republic (Germany in the 1920s) inflation.
Really, it is time to stop wasting time harassing Donald Trump out of spite.
The New York D.A. said he would not prosecute Trump for alledgedly misstating assets this week because he felt his prosecutors could not prove intent to deceive. So, if a New York D.A. says there is nothing there, there’s nothing there.
Any conviction obtained on Mr. Trump, though is a finesse that will not stand. We know it would be overturned by the hear-no-evil, see-no-evil, decide-no-evil Supreme Court.
Trump is dead politically.
He like Mitt Romney spoke the truth about himself through his own mouth he has handed the floundering Democratic leadership of the party (please lead?) a priceless nugget.
His admiration of Mr. Putin, should be the red herring to make every person vote for any person opposing a Republican.
I have a dream.
It is a marvelous spot. Run Trump on Fox News admiring Mr. Putin and put up a picture of a Urkranian refuge say “Would you put America in the hands of this man, again?”
Or run spots of Putin and Trump together: The announcer-spokesperson saying “What were they talking about? Do we know? What did they say and what did they decide?”
Or make the spot with Muppets—one as Mr. Trump and one of that lovable strong smart Leader discussing plans for the future of our two countries and how they can work together.
Ahhhh but I digress.
With the oil companies jacking the price of gasoline because of the price of crude oil being speculated up and “supply uncertain,” this is unbelievable.
At this rate of price increase, (40 cents a gallon in week for cash regular you could hit $5 a gallon by April, $6 a gallon by June when the cost of gas always goes up for summer vacations. That is going to affect the driving vacation market. It is going to skyrocket air fares (jet fuel will go up). It will drive up food transportation costs raising food prices. Cooking steak out will be expensive. Seafood will rise due to marine gas increases for the fishing boats.
All of a sudden the Washington that never seems to see what is going on and the speed at which a trend can accelerate, because they are always churning in political discord and power aggrandizing, will not know what to do. Democrats will be portrayed as confused and unable to govern, not like Republicans who are decisive and will have a slogan like “FINISH THE JOB, AMERICA” or something equally obnoxious but appealing.
First, in my opinion, you have to hold business accountable for reckless price gouging, raising prices, firing staff and not bringing them back, and though not all companies have done this, the responsible company will not be hurt while the profit horders and extorter companies will be.
There should be an emergency summoning to Washington of corporate titans demanding the reasons for the price increases, documenting it and showing whether supplies (lack of) really caused it and give them April and May to stabilize prices.
If inflation rate does not go down, tell them you will establish price and profit controls. To my understanding, profit controls have never been instituted.
Corporations are essentially cowards they do what they do because they can and by buying politicians they insure sympathetic treatment. Well they deserve no sympathy now. They are killing us. (Con Ed seeks a 14% increase in their electric rates, are they serious?)
The government bailed banks, airlines, corporations out with our money.
Now record earnings are being experienced.
Many corporations trimmed workforces to stay profitable during the pandemic, and did not bring them back. They were not supposed to do that. There was no enforcement of their cruel rapacious conduct. Now they are reaping stockholder windfalls with their cavalier price increases.
The President has the right to impose such a Price and Profit control. President Richard Nixon invoked them in 1971 before the Presidential election .
The Cato Institute arguing against the wage and price controls that Nixon imposed talks about it here in the time when inflation was only 1%.
Now it is running 25%! Perhaps now would be a good time to bring the new robber barons under control?
You can read about the Nixon Price control action and how it was done at the Cato Institute website:
Price controls (above) combined with rationing lowered inflation in World War II, and kept it half the amount it was in World War I. You can read the complete arguments on price control effectiveness here on Economics Help:
Inflation is more and more being voiced as a problem especially by Republicans. If price controls are not brought up by the Democrats to stop this egregious windfall profit taking in the face of adversity, the Republicans will, invoking the Nixon precedent. If they do that, they will solidify their campaign in the fall with a legitimate issue that will rile up their supporters and seduce independents.
Do something, Washington!