It is quite painful to be a professional economist and be preached to about “the economy,” especially if you have dedicated your time to studying how prices are determined in markets. Consider a few of the markets that are contributing to the increases in consumer prices.
Gasoline prices: Putin’s invasion of Ukraine is a source of the problem; the oil companies didn’t do anything to deserve the high oil prices. The oil companies’ time to reap high profits from their monopoly on the U.S. consumer is limited. The government shouldn’t do anything to intervene. We already subsidize consumers to the tune of 7 cents per mile by spending tax revenue to support passenger car transport.
Health insurance: Premiums went up 28% in 2021. Over 80% of health insurance markets would be considered to be monopolized by current law, but health insurers are exempt from antitrust regulation by the states.
Groceries, meat, poultry and eggs: Mergers and acquisitions in these markets brought on by COVID-19 pandemic have led to consolidation in these markets, making it possible for suppliers to sustain higher prices. which has led to higher profits.
Financial markets: Financial markets have been breast-fed by the Fed since 2008. They should have been weaned by 2018. Price of credit is up. This correction should have been done before the pandemic.
I could go on. Get the picture? We have a market economy; that is a good thing. Adjust. Spend your money wisely. Makes you angry? Like a spoiled child?
Robert Kemp
Bluffton
LETTERS POLICY
We welcome letters of 275 words or fewer. Letters are subject to editing for length, clarity and grammar. They should be concise, to the point and original — no form letters, please. Letters dealing with private disputes or containing criticism of private individuals or businesses are not published. Letters must have a signature (unless emailed) and a full name, address and daytime telephone number (for verification purposes only). During periods of high volume, such as prior to an election, writers can be limited to one letter a month. Letters may be published on our website.
SEND LETTERS TO:
The Lima News
Your View
3515 Elida Road
Lima, OH 45807
E-MAIL LETTERS
