“Known as the Farm Workforce Modernization Act, the measure was sponsored by Reps. Zoe Lofgren (D–Calif.) and Dan Newhouse (R–Wash.) and passed the House twice last year. It aims to improve the immigration mechanics behind the U.S. agricultural workforce, expanding legal pathways available to foreign workers and the domestic farmers who hope to hire them.
The ability to hire more agricultural workers translates into more helping hands for farmers and increased production of goods, which then means fewer food shortages and lower prices at the grocery store.”
“”Data on overall traffic trends supports the notion that the average flier has not been negatively affected by consolidation,” the Eno Center for Transportation, a research nonprofit, found in 2017. “As the industry has consolidated and grown throughout the decades, the number of seats that are available for passenger use—available seat miles—has increased multiple times over. By some measures, the cost of domestic air travel has remained level since 2006, adjusting for inflation.”
However, there is some evidence that certain mergers have led to price increases. As a 2016 data analysis by travel writer JT Genter found, “On average, airfares between former Delta and Northwest hubs increased substantially—much more than the national average—demonstrating that the Delta-Northwest merger wasn’t good for hub-based flyers.” Genter continued, “However, airfares between United and Continental hubs have seen much more modest increases over the last five years, and the fares have actually decreased on average over the last four years.”
Current evidence, though not uniformly supportive of all mergers, points toward them being generally good for consumers. Larger airlines tend to mean more flights at similar or lower prices—especially when traveling through hubs. Even when evidence points to some mergers resulting in price hikes for consumers, Warren and Padilla’s assertions that airline consolidation “routinely heaps inconvenience and abuse on consumers” are exaggerated.”
“Mark Cuban’s online pharmacy was founded to sell prescription drugs at the lowest and most transparent prices possible. As Cuban recently told PBS News Weekend, when it comes to medication, “the reality is the only number that matters is cost. What can we as the retailer or the distributor, buy it for and how low can we sell it? So we decided to take the exact opposite approach that politicians have been taking.”
That approach involves selling generic drugs for a 15 percent markup, plus $3 for pharmacy labor and $5 shipping. The result is that Cuban’s company is able to sell generic drugs at significantly lower rates than typical retail prices. For example, a 30-day supply of Amlodipine, a common high blood pressure medication, costs only $3.60 at Cost Plus Drugs, while the typical retail price is $50.10.
Some drugs have even higher savings.”
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“Cuban’s company is restricted to unpatented generic drugs. While Cuban can sell these drugs at a massive discount, it is worth noting that research into new drugs, as well as the costs of clinical trials, is funded by the high profit margins derived from patents. While Cost Plus Drugs is a welcome innovation for drugs that are no longer patented, Cuban’s business model likely can’t fund drug innovation.”
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“Cuban himself notes that Cost Plus Drugs isn’t the first company to try this approach, but it is the first to succeed”
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“Last week, a new study from the Annals of Internal Medicine estimated that if Medicare Part D plans had purchased generic drugs from Cuban’s company, Medicare could have saved $3.6 billion in 2020.”
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“Cuban has been vocal on Twitter about the study, asking President Joe Biden and other political leaders to “have your people call my people and let’s get this done.” However, as exciting as reducing Medicare’s budget sounds, progress on the issue seems unlikely. Legislative solutions to the high price of prescription drugs have often been slow-moving and stalled by partisan bickering.”
“Several factors have pushed gas prices down, including a drop in oil prices as recession fears grow and a smaller-than-expected impact from Western sanctions on Russia. Supply has also improved relative to demand, which has slightly fallen in recent weeks and remains at levels lower than a year ago, according to data from the US Energy Information Administration.”
“the cost of sending goods across the Pacific is still more expensive than it was before the pandemic. This price surge is a product of not only the delays and bottlenecks in the supply chain created by Covid-19 but also the huge increase in demand for consumer goods that followed. This demand was far greater than what shipping companies or American ports could handle. As a result, the price of shipping went up, creating increases in costs for importers and retailers within the United States. Those costs have now been passed on to consumers, which is partly why many everyday items are more expensive lately. (Surging gas prices, the war in Ukraine, and pandemic-era financial policies may also be driving inflation.)
Experts told Recode it’s unlikely that Biden’s crackdown on the shipping industry will significantly reduce the cost of products, even if it will make some meaningful improvements to operations at America’s ports. The small group of companies that dominate the shipping industry remain extremely powerful: They still benefit from longtime exemptions from antitrust laws and continue to wield enormous power.
The situation serves as a reminder that, while specific segments like the ocean shipping industry can play a massive role in influencing the prices of everyday goods, they’re also participating in the much larger economic system of supply and demand. This system involves everyone from the companies that build ocean vessels that shipping companies use to parents desperately trying to buy Barbie Dreamhouses for their kids. This complexity can make price increases extremely hard to rein in, even if you’re the president.”
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“Factories, understandably, closed because of Covid-19, and that created manufacturing delays, threw schedules off course, and ultimately led to shortages of all sorts of products. The pandemic also meant that people spent more time at home, stopped buying services, and cut back on travel. As a result, they started to spend a lot more on consumer goods, goods that typically needed to be shipped to the US from abroad, primarily from countries in Asia. Shipping became harder to provide and much more in demand — which sent shipping prices skyrocketing.
Now these shipping companies are facing a lot more scrutiny as well as growing concern that they’ve used their longtime antitrust immunity to profit during a crisis. Before the pandemic, these carriers had an average operating margin of just under 4 percent, but during the third quarter of last year, that margin grew to more than 50 percent. This has made importing goods in the US much more expensive: At the end of June, it costs nearly $7,600 to rent a 40-foot shipping container traveling across the Pacific compared to about $1,300 in early 2020, according to one shipping industry index.
“Today, the top nine companies control 85 percent of the trade. Go back 15 years ago, the top 10 companies controlled 50 percent of the trade. They basically ran companies out of business and bottom up,” Sal Mercogliano, a maritime history professor at Campbell University, said. “They were in a pretty vicious rate war, and then all of a sudden Covid happens and rates go through the roof.””
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“Enter the Ocean Shipping Reform Act, which the president claims will lower costs and help fight inflation. The law, which was signed by Biden in June, empowers the Federal Maritime Commission, the agency that regulates shipping into the US, to investigate carriers’ practices and help craft new rules. The government will also create a more formalized way to track chassis, the metal frames that are used to carry shipping containers at the ports, and expand the commission’s powers when the ports are extremely congested. Finally, the law targets the increasingly common practice of ocean carriers transporting empty containers back across the Pacific instead of waiting to fill their cargo with American exports, including agricultural products that American farmers have sold to customers in Asia.”
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“The global supply chain is made up of many different countries, companies, and people, which means that the price of a single good is influenced by myriad factors that are incredibly hard to control. That means that, for now, you shouldn’t expect Joe Biden’s mounting effort to regulate the shipping industry to have an immediate impact on the price of the stuff you buy.
In reality, the best way to lower the cost of shipping is for people to stop buying so many things that need to be shipped. Given that the economy doesn’t seem to be in a great place right now, that just might happen sooner rather than later. For what it’s worth, imports to the US seem to be declining, and American consumers appear to be returning to their pre-Covid spending habits.”
How Much Of The Gasoline Price Surge Is President Biden’s Fault? Robert Rapier. 2022 3 13. Forbes. https://www.forbes.com/sites/rrapier/2022/03/13/how-much-of-the-gasoline-price-surge-is-president-bidens-fault/?sh=31618bce7c8b 4 reasons high gas prices aren’t Joe Biden’s fault—and one critical way he’s adding to the problem Will Daniel. 2022 6 8. Fortune. https://www.yahoo.com/video/4-reasons-high-gas-prices-090000545.html
“So if there’s enough food to go around, why has the global trend toward lower levels of hunger recently reversed? “As of today, the world has no global shortage of food, but food is quite expensive and people’s wages have not adjusted yet,” said David Laborde, a senior research fellow at the International Food Policy Research Institute. “The main issue is that we have problems moving this food around, either due to the war or export restrictions.”
As a result, world food prices reached an all-time high earlier this year, according to the Food and Agriculture Organization of the United Nations.
The price increases are the result of a concatenation of events stemming from the disruptions caused by Russia’s invasion of Ukraine, including price increases in fuels and fertilizers and blocked grain exports. In addition, the WFP notes, “Conflict is still the biggest driver of hunger, with 60 percent of the world’s hungry living in areas afflicted by war and violence.”
In a world with more than enough food to feed everybody, despotic governmental brutality and stupidity are once again causing famines.”
“Inflation isn’t getting much better: Consumer prices surged again in June, reaching a new four-decade high as many Americans are already feeling frustrated with higher costs denting their budgets.
The US Consumer Price Index (CPI), which measures the change in prices for goods and services, rose 9.1 percent from a year earlier and 1.3 percent from May, according to Labor Department data released on Wednesday.
The new numbers mean the Federal Reserve is likely to continue aggressively raising interest rates, making it more expensive to borrow money in the hope that Americans will spend less. The jump in inflation is bad news for President Joe Biden, whose approval ratings are stubbornly low. And although gas prices have started to drop in recent weeks, economists and forecasters warn that the situation might not significantly improve for some time, making it harder for people to afford essentials like housing and groceries.”
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“Nearly everything grew more expensive, but the price gains were mainly fueled by an increase in energy, food, and shelter costs, which have been climbing for months amid supply chain disruptions and Russia’s invasion of Ukraine. Energy prices drove most of the gains, with gas prices up 11.2 percent in June from the month before. Food prices increased 1 percent as consumers paid more for cereal, dairy products, fruits and vegetables, and other items at the grocery store.
Core prices, which exclude volatile food and energy costs, rose an uncomfortably high 0.7 percent from May to June, a slightly bigger increase compared to the month before, when core prices jumped 0.6 percent.”