Comment on I feel the actual inflation

• Chickenstalker@lemmy.world ⁨1⁩ ⁨year⁩ ago

  How so? In my country, certain basic food items are priced capped AND rationed, meaning you’re only allowed to buy a certain amount of it at a time.

  > but but but muh freedum market$$

  No! Worldwide, the agricultural sector is THE MOST SUBSIDISED economic field. You can’t have it both ways. If taxpayers’ money is used to prop up your business, you have a duty to the taxpayers and country.

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  • Cleverdawny@lemm.ee ⁨1⁩ ⁨year⁩ ago

    Subsidies may distort the market but they don’t change the existence of the supply/demand curve. Any producer of a product is going to sell their goods to the highest bidder, and if someone is capping what a product can sell for that means capping what they can purchase the product for. Grocery stores aren’t going to sell for a loss.

    If the central government enacts a scheme of rationing and central purchasing, that’s one thing. But in a free market situation if a grocery in country A will buy lentils for €1 a kg and country B can only pay €.50 then the lentils are getting sold to country A until that demand is fulfilled. Which means shortages in country B.

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    • IzzyJ@lemmy.world ⁨1⁩ ⁨year⁩ ago

      Considering how much billionaires hoard, im happy just tacking a sales quota on at the same time so they just have to eat losses for a bit. People eating is more important, and frankly anything that forces them to lose money back into the system is a good thing

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      • Cleverdawny@lemm.ee ⁨1⁩ ⁨year⁩ ago

        Why wouldn’t they just close their business if it was unprofitable

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• FluffyPotato@lemmy.world ⁨1⁩ ⁨year⁩ ago

  Most food here is locally produced, I don’t see how that would create a shortage. Like people aren’t going to sell their grocery stores cuz their margins are thin again and farming is so heavily subsidised that I don’t see it effecting farmers.

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  • Cleverdawny@lemm.ee ⁨1⁩ ⁨year⁩ ago

    If a local producer can get more selling to someone in the next country, they will. Basic economics. Prohibit them from doing so and they might plant something more profitable or just say “fuck it” and let their fields lie fallow, if they’re not making a profit. Farming ain’t free and farmers are on thin margins.

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  • corm@sopuli.xyz ⁨1⁩ ⁨year⁩ ago

    *affecting

    And you’re wrong. Farmers and grocery stores are already operating on thin margins. Sure we could double subsidies but then why not just make food free instead? How about we just make food free for people who can’t afford it, maybe with some sort of special card

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    • FluffyPotato@lemmy.world ⁨1⁩ ⁨year⁩ ago

      Farmers yes, grocery stores not anymore. Profits of companies is public info here and they started racking it in the moment the massive ‘inflation’ started. My parents live near a farm and they just buy veggies directly from them for like a fraction of the price, I unfortunately live in a city though. Prices are better at local markets but there arent many of those.

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      • Cleverdawny@lemm.ee ⁨1⁩ ⁨year⁩ ago

        Prices are better from a farm because you’re skipping two steps on the distribution chain, at least - a food warehouse and the grocery store. Could be three, some grocery stores buy from an intermediate warehouse distributor that services smaller stores.

        So potatoes might be sold at .20 on a farm and .50 at the store, because they need to be sold twice to reach the store, transported twice, bagged, washed, stored twice, and finally placed in the retail front for sale.

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  • lud@lemm.ee ⁨1⁩ ⁨year⁩ ago

    It runs the risk of affecting the farmers a lot especially in Europe where they will soon have to deal with very expensive electricity. So the government would have to know that it’s really price gouging and not a necessity (I believe it’s price gouging, but governments can’t (or shouldn’t) make rash decisions on beliefs.)

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