2 + 2 ≠ 4

Prices for everything are rising and have been on the uptick for a while. Now companies are forecasting continued increases. LINK

Not only are there increases being forecast but some are in the 10% range.

Anyone who thinks supply and demand, the supposed cornerstones of our capitalist marketplace, are working had better look again.

Gas is the highest it’s ever been for this time of year even though driving has dipped just below the levels from 2005.

What is going on is companies are doing whatever it takes to have profits to their liking instead of those established by marketplace activity. In any normal circumstance when business is slow you have less revenue and less profit. But that isn’t the way our economy works anymore. Now we have companies rigging things to guarantee whatever profit they want and accepting no marketplace risk at all. As with everything of late all the risk is being handed to consumers and taxpayers. Just the same as our stupid wars. The only persons at risk are those at the low end of the economic ladder.

Lis, we so need a crime category.

3 thoughts on “2 + 2 ≠ 4

  1. cmaukonen

    We keep on trying to resurrect an economic system that really only worked well when we were mostly agrarian. When production of food and clothes and articles more or less equaled the needs and wants of the people.

    The industrial revolution changed all this by enabling us to produce far more than what was needed and wanted. And technology has made this wider and wider. Requiring fewer and fewer people to produce more and more.

    Add to that the way we place value on what is produced has become more and more arbitrary. Based not so much on any inherent worth or time or resources used, but out of greed or ego or no reason at all.

    So we have make work situations and generate need where there really isn’t any. Pay people to create problems and then pay others to fix them or come up with solutions.

    And as long as we had people who were forced to do the kinds of work nobody else wanted and it took 100 people on an assembly like to put a Chevy or an RCA TV together it still mostly worked. But if you look at history from the beginnings of the industrial revolution on, our economy tanked numerous times. And each time was worse than the last.

    I get a kick out of watching DW Journal. During the week they have two anchors. One doing regular news and another for business. The business guy will say how great the German economy is doing and then the news guy will come right after and say how concerned the finance minister is because the economy is all being held together with exports and the regular Germans are not buying German goods and what happens when the exports fall. And neither one gets the disconnect in the two stories even though they are sitting right next to on another. Like some horrible bit from SNL.

    Our economic system is horribly broken. You work in the computer industry but the technology available right now could make what you do totally unnecessary. It’s simply that no one so far has brought it to market….yet.

    So how does one value you expertise and knowledge and experience when nobody wants it any more ? Or mine or anyone else’s ?

    Major paradigm shift is badly needed but no one has the guts to even say so.

    1. I think that you are likely correct in a number of ways C. The structure we have no longer is a proper container for the pieces. All the pieces are different from even ten years ago. We keep patching the structure but it’s so shot full of inconsistencies it’s impossible for it to function in a logically ordered way.

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