#greedflation

[liberalsarecool]

Greedflation is manifest.

[nando161mando]

That is the truth sadly

[realcleverissues]

Very obvious to me and others:

1. Companies have been bragging about record profits. You don’t get record profits if your costs are going up. You get them if your profit margin is going up.

2. In Seattle, during covid, many workers got a hazard pay bump of $4. Groceries raised prices and blamed increased worker pay. But hazard pay ended nearly a year ago and prices have not come down.

It’s greed and taking advantage of a crisis and the soft collusion of capitalists getting away with whatever they can.

This is one reason why I think the gov’t should offer some basic economic services. E.g. A gov’t run grocery store. It can have the exact same stuff as other stores but there’s zero profit margin. So, firstly, consumers are more likely to get the best deal possible. Secondly, if we have a similar situation where groceries are hiking prices, we can check with the gov’t run store and ask, “why haven’t *they* needed to raise prices?” Or, “why have their prices only increased 10% while yours have increased 80%?”

Frankly, I don’t know why we don’t have non-profit options for all the essentials people need to live, esp food, housing, and medicine. I’m not saying we need to destroy the private market: people who want luxury food and luxury homes etc can still get them, but most people just want the basics to literally stay alive in this economy. We don’t need everyone getting screwed with every single financial transaction they make.

[bitchesgetriches]

Raising the Minimum Wage Would Make All Our Lives Better 

[theconcealedweapon]

Trump supporters complain about socialism and communism so much that they often forget that it's not our current system.

That's why they frequently blame democratic politicians whenever prices are too high. They think we already live in a system in which the government sets prices.

They're completely unaware that even when the president is a democrat, the system is still capitalist. Corporations still set the prices and are making record profits.

That's also why they complain when a democratic politician tries to pass price control legislation, which would solve the problem they're complaining about. They think the government intervention is already happening and is why the prices are high.

Capitalism requires endless increasing of profits. Early stage capitalism allows inventing new ideas or attracting new customers. But eventually, they already have all the customers they're going to get. So the only way to keep increasing profits is to raise prices, underpay employees, and put ads everywhere. Inflation is inevitable under capitalism.

[whydidisavethistomyphone]

[liberalsarecool]

A LOT of "inflation" is actually corporations taking advantage of "inflation" to hide profiteering.

[mostlysignssomeportents]

Greedflation, but for prisoners

I'm touring my new, nationally bestselling novel The Bezzle! Catch me TOMORROW (Apr 21) in TORINO, then Marin County (Apr 27), Winnipeg (May 2), Calgary (May 3), Vancouver (May 4), and beyond!

Today in "Capitalists Hate Capitalism" news: The Appeal has published the first-ever survey of national prison commissary prices, revealing just how badly the prison profiteer system gouges American's all-time, world-record-beating prison population:

https://theappeal.org/locked-in-priced-out-how-much-prison-commissary-prices/

Like every aspect of the prison contracting system, prison commissaries – the stores where prisoners are able to buy food, sundries, toiletries and other items – are dominated by private equity funds that have bought out all the smaller players. Private equity deals always involve gigantic amounts of debt (typically, the first thing PE companies do after acquiring a company is to borrow heavily against it and then pay themselves a hefty dividend).

The need to service this debt drives PE companies to cut quality, squeeze suppliers, and raise prices. That's why PE loves to buy up the kinds of businesses you must spend your money at: dialysis clinics, long-term care facilities, funeral homes, and prison services.

Prisoners, after all, are a literal captive market. Unlike capitalist ventures, which involve the risk that a customer will take their business elsewhere, prison commissary providers have the most airtight of monopolies over prisoners' shopping.

Not that prisoners have a lot of money to spend. The 13th Amendment specifically allows for the enslavement of convicted criminals, and so even though many prisoners are subject to forced labor, they aren't necessarily paid for it:

https://pluralistic.net/2024/04/02/captive-customers/#guillotine-watch

Six states ban paying prisoners anything. North Carolina caps prisoners' pay at one dollar per day. Nationally, prisoners earn $0.52/hour, while producing $11b/year in goods and services:

https://www.dollarsandsense.org/archives/2024/0324bowman.html

So there's a double cruelty to prison commissary price-gouging. Prisoners earn far less than any other kind of worker, and they pay vastly inflated prices for the necessities of life. There's also a triple cruelty: prisoners' families – deprived of an incarcerated breadwinner's earnings – are called upon to make up the difference for jacked up commissary prices out of their own strained finances.

So what does prison profiteering look like, in dollars and sense? Here's the first-of-its-kind database tracking the costs of food, hygiene items and religious items in 46 states:

https://theappeal.org/commissary-database/

Prisoners rely heavily on commissaries for food. Prisons serve spoiled, inedible food, and often there isn't enough to go around – prisoners who rely on the food provided by their institutions literally starve. This is worst in prisons where private equity funds have taken over the cafeteria, which is inevitable accompanied by swingeing cuts to food quality and portions:

https://theappeal.org/prison-food-virginia-fluvanna-correctional-center/

So you have one private equity fund starving prisoners, and another that's gouging them on food. Or sometimes it's the same company. Keefe Group, owned by HIG Capital, provides commissaries to prisons whose cafeterias are managed by other HIG Capital portfolio companies like Trinity Services Group. HIG also owns the prison health-care company Wellpath – so if they give you food poisoning, they get paid twice.

Wellpath delivers "grossly inadequate healthcare":

https://theappeal.org/massachusetts-prisons-wellpath-dentures-teeth/

And Trinity serves "meager portions of inedible food":

https://theappeal.org/clayton-county-jail-sheriff-election/

When prison commissaries gouge on food, no part of the inventory is spared, even the cheapest items. In Florida, a packet of ramen costs $1.06, 300% more inside the prison than it does at the Target down the street:

https://www.documentcloud.org/documents/24444312-fl_doc_combined_commissary_lists#document/p6/a2444049

America's prisoners aren't just hungry, they're also hot. The climate emergency is sending temperatures in America's largely un-air-conditioned prisons soaring to dangerous levels. Commissaries capitalize on this, too: an 8" fan costs $40 in Delaware's Sussex Correctional Institution. In Georgia, that fan goes for $32 (but prisoners are not paid for their labor in Georgia pens). And in scorching Texas, the commissary raised the price of water by 50% last summer:

https://www.tpr.org/criminal-justice/2023-07-20/texas-charges-prisoners-50-more-for-water-for-as-heat-wave-continues

Toiletries are also sold at prices that would make an airport gift-shop blush. Need denture adhesive? That's $12.28 in an Idaho pen, triple the retail price. 15% of America's prisoners are over 55. The Keefe Group – sister company to the "grossly inadequate" healthcare company Wellpath – operates that commissary. In Oregon, the commissary charges a 200% markup on hearing-aid batteries. Vermont charges a 500% markup on reading glasses. Imagine spending decades in prison: toothless, blind, and deaf.

Then there's the religious items. Bibles and Christmas cards are surprisingly reasonable, but a Qaran will run you $26 in Vermont, where a Bible is a mere $4.55. Kufi caps – which cost $3 or less in the free world – go for $12 in Indiana prisons. A Virginia prisoner needs to work for 8 hours to earn enough to buy a commissary Ramadan card (you can buy a Christmas card after three hours' labor).

Prison price-gougers are finally facing a comeuppance. California's new BASIC Act caps prison commissary markups at 35% (California commissaries used to charge 63-200% markups):

https://theappeal.org/price-gouging-in-california-prisons-newsom-signature/

Last year, Nevada banned any markup on hygiene items:

https://www.leg.state.nv.us/App/NELIS/REL/82nd2023/Bill/10425/Overview

And prison tech monopolist Securus has been driven to the brink of bankruptcy, thanks to the activism of Worth Rises and its coalition partners:

https://pluralistic.net/2024/04/08/money-talks/

When someone tells you who they are, believe them the first time. Prisons show us how businesses would treat us if they could get away with it.

If you'd like an essay-formatted version of this post to read or share, here's a link to it on pluralistic.net, my surveillance-free, ad-free, tracker-free blog:

https://pluralistic.net/2024/04/20/captive-market/#locked-in

[truth-has-a-liberal-bias]

...

Two things are driving the divide between how homeowners and renters experience inflation.

First, while most homeowners’ monthly payments have not risen, the cost of renting has surged. Rent jumped 11% in 2022 from the year before. It also climbed higher in 2023, although at a significantly slower pace. Rent prices increased just 0.2% last year, according to Realtor.com.

As of November, the price of rent nationally was up 22% compared to pre-pandemic levels, according to Realtor.com.

Meanwhile, because most homeowners have a fixed-rate loan, their costs have not changed even as mortgage rates have soared during the Fed’s historic effort to rein in inflation. [...]

[arctic-hands]

I know no company has ever really truly cared about anyone under capitalism, but you know how during the Depression, flour sellers realized people were using the cloth sacks the flour came in as cheap fabric to make clothes out of, and so then they started selling the flour sacks with pretty patterns on it so people wouldn't feel embarrassed about wearing flour sack clothes?

If a company did that today they'd jack up the price of flour to obscene and beyond cost to justify the "act of helping people"

[porterdavis]

Price gouging / profiteering

[aunti-christ-ine]

☑️ Vote BLUE no matter who 🗳

[sniperct]

[liberalsarecool]

If you are mad at inflation and you want weaker government, fewer regulations, and hate labor unions, you are the problem.

Vote Blue.

[mostlysignssomeportents]

Meatspace twiddling

I'm on tour with my new, nationally bestselling novel The Bezzle! Catch me next weekend (Mar 30/31) in ANAHEIM at WONDERCON, then in Boston with Randall "XKCD" Munroe (Apr 11), then Providence (Apr 12), and beyond!

"Enshittification" isn't just a way of describing the symptoms of platform decay: it's also a theory of the mechanism of decay – the means by which platforms get shittier and shittier until they are a giant pile of shit.

I call that mechanism "twiddling": this is the ability of digital services to alter their business-logic – the prices they charge, the payouts they offer, the particulars of the deal – from instant to instant, for each user, continuously:

https://pluralistic.net/2023/02/19/twiddler/

Contrary to Big Tech's own boasting about its operations, the tricks that tech firms play to siphon value away from business customers and end-users aren't very sophisticated. They're crude gimmicks, like offering a higher per-hour wage to Uber drivers whom the algorithm judges to be picky about which rides they'll clock in for, and then lowering the wage by small increments as a way of lulling the driver into gradually accepting a permanent lower rate:

https://pluralistic.net/2023/04/12/algorithmic-wage-discrimination/#fishers-of-men

This is a simple trick. The difference is that tech platforms like Uber can play it over and over, and very quickly. There's plenty of wage-stealing scumbag bosses who'd have loved to have shaved pennies off their workers' paychecks, then added a few cents back in if a worker cried foul, then started shaving the pennies again. The thing that stopped those bosses was the bottleneck of payroll clerks, who couldn't make the changes fast enough.

Uber plays crude tricks – like claiming that a driver isn't an employee because the control is mediated through an app – and then piles more crude tricks on top – this algorithmic wage discrimination gambit.

Have you ever watched a shell-game performed very slowly?

https://www.masterclass.com/articles/how-to-do-penn-tellers-famous-cups-and-balls-trick-in-12-steps

It's a series of very simple gimmicks, performed very quickly and smoothly. Computers are very quick and very smooth. The quickness of the hand deceives the eye: do crude tricks with superhuman speed and they'll seem sophisticated.

The one bright spot in the Great Enshittening that we're living through is that many firms are not sufficiently digitized to to these crude tricks very quickly. Take grocery stores: they can get up to a lot of the same tricks as Amazon – for example, they can charge suppliers for placement on the most prominent, easiest-to-reach shelves, reorganizing your shopping based on which companies pay the biggest bribes, rather than offering the best products and prices.

But Amazon takes this to a whole different level – beyond simply organizing their product pages based on payola, they do this for search. You ask Amazon, "What's your cheapest batteries?" and it lies to you. If you click the first link in a search-results page, you'll pay 29% more than you would if you got the best product – a product that is, on average, 17 places down on the results page. Amazon makes $38b/year taking bribes to lie to you:

https://pluralistic.net/2023/11/06/attention-rents/#consumer-welfare-queens

Amazon can do more than that. Thanks to its digital nature, it can continuously reprice its offerings – indeed, it can simply make up each price displayed on every product at the instant you look at it – based on its surveillance data about you, estimating your willingness to pay. For sellers, Amazon can continuously re-weight the likelihood that a given product will be shown to a customer based on the seller's willingness to discount their products, even to the point where they go out of business:

https://www.businessinsider.com/sadistic-amazon-treated-book-sellers-the-way-a-cheetah-would-pursue-a-sickly-gazelle-2013-10

Twiddling, in other words, lets digital services honeycomb their servers with sneaky wormholes that let them siphon value away from one kind of platform user and give it to another (as when Apple silently began spying on Iphone owners to create profiles for advertisers), or to themselves.

But hard-goods businesses struggle to do this kind of twiddling. Not for lack of desire – but for lack of capacity. Jeff Bezos, owner of Amazon Fresh – an online grocery store – can change prices and layout millions of times per day, at effectively zero cost. Jeff Bezos, owner of Whole Foods – a brick-and-mortar grocer – needs a army of teenagers on rollerskates with pricing guns to achieve a fraction of this agility.

So hard-goods businesses are somewhat enshittification-resistant. It's not that their owners are more interested in the welfare of their customers, workers and suppliers – they merely lack the capacity to continuously rejigger the way their business runs.

Well, about that.

Grocers have been experimenting with "electronic shelf labels" in order to do "dynamic pricing" – that means that prices change quickly, in response to circumstances:

https://www.npr.org/2024/03/06/1197958433/dynamic-pricing-grocery-supermarkets

This doesn't have to be bad! As @planetmoney points out, it's a little weird that grocers don't discount milk whose sell-by date is drawing near. That milk is worth less to shoppers, because they have to use it more quickly lest it expire. Instead of marking down the price of perishable goods – day-old lettuce, yesterday's bread, etc – grocers put them on the shelves next to fresher, more valuable products, leading to billions of dollars' worth of food-waste and and unimaginable quantities of methane-producing, planet-cooking landfill.

In Norway, ESLs are pretty well established and – at least according to Planet Money's reporting – they are used exclusively to offer discounts in order to reduce waste. They make everyone better off.

But towards the end of the story, they note that Norway's grocery sector – which alters prices up to 2,000 times per day – has been accused of using ESLs to rig prices, hiking them and blaming them on pandemic supply-chain problems and loose monetary policy. Greedflation, in other words.

Greedflation is rampant in the grocery sector, all around the world. Remember when the price of eggs doubled and they blamed in on bird-flu, even as the CEO of the one company that owns every egg brand you've ever heard of boasted about how he could hike prices and suckers would just pay it?

https://pluralistic.net/2023/01/23/cant-make-an-omelet/#keep-calm-and-crack-on

In Canada, grocers rigged the price of bread, the most Les-Mis-ass form of corporate crime you can imagine (do you want guillotines, Galen Weston? Because this is how you get guillotines):

https://en.wikipedia.org/wiki/Bread_price-fixing_in_Canada

EU grocers – another highly concentrated industry – also collude to rig prices:

https://pluralistic.net/2023/09/17/how-to-think-about-scraping/

Which is all to say that while these companies don't have to use the twiddling capabilities that come with ESLs to enshittify their stores, we'd be pretty fucking naive to assume that they won't.

And here's the bad news: US grocers like Whole Foods (owned by Amazon, the company that wrote the enshittification playbook) are already experimenting with ESLs. So is Alberstons/Safeway, the massive, inbred conglomerate that has already demonstrated its passion for using twiddling to fuck over their workers:

https://knock-la.com/vons-fires-delivery-drivers-prop-22-e899ee24ffd0/

Economists love "price discrimination" – where prices change based on circumstance, trying to match the perfect price with the perfect customer. On paper, that sounds plausible: if I need a quart of milk for a recipe I'm making tonight and I get a 50% discount on some about-to-expire 2%, then everyone's better off. I get a discount and the grocer gets some money for milk they'd have to throw away at the end of the day.

But these elegant, self-licking ice-cream cones only emerge if the corporation offering the deal is constrained. Perhaps they're constrained by competition – the fear that you'll go elsewhere. Or perhaps they're constrained by regulation – the fear that they'll be punished if they use twiddling-tech to cheat you.

The grocery sector, dominated by a cartel of massive companies that routinely collude to rip us off, is not constrained by competition. And for years, regulators let them get away with ripping us off (though finally that might be changing):

https://www.nytimes.com/2024/03/21/us/politics/grocery-prices-pandemic-ftc.html?unlocked_article_code=1.ek0.t2Pr.g4n2usbxEcoa

For neoclassical economists, the answer to all this is "caveat emptor" – let the buyer beware. If you want to make sure that ESLs are only used to offer you discounts and not to gouge prices, all you need to do is note the price of everything you buy, every time you buy it, and triple-check it every time you go back to the grocery store. Just be eternally vigilant!

Thing is, the one thing computers are much better at than humans is vigilance. With ESLs and other twiddling mechanisms, you're a fish on a hook, and the seller is tireless in giving you a little more slack, then a little less, until you finally drop your guard.

Economists desperately want these elegant models to work, but "efficient market hypothesis" is a brain-worm that always turns into apologetics for fraud. Dynamic markets sound like a good idea, but they are catnip for cheaters. "Just be eternally vigilant" is miserable advice, and no way to live your life:

https://pluralistic.net/2023/02/24/passive-income/#swiss-cheese-security

In his brilliant novel Spook Country, @GreatDismal describes augmented reality as "cyberspace everting" – that is, turning inside-out:

https://memex.craphound.com/2007/07/31/william-gibsons-spook-country/

The extrusion of twiddling technology from digital platforms into the physical world isn't cyberspace everting so much as it is cyberspace prolapsing.

If you'd like an essay-formatted version of this post to read or share, here's a link to it on pluralistic.net, my surveillance-free, ad-free, tracker-free blog:

https://pluralistic.net/2024/03/26/glitchbread/#electronic-shelf-tags