Rising prices are hurting everyone – especially those on fixed incomes, like seniors, millennials, and small businesses.
The government does not officially recognize there is an inflation problem, but everybody acknowledges that prices are rising.
This is especially the case for readers in California, who see gasoline prices 40% higher than the national average. And other products and services more expensive as well.
Why? Because of government regulations.
These job-killing and price-raising regulations sometimes are imposed by regulatory agencies, sometimes by the legislature and governor, and sometimes by the voters.
For example, take eggs.
The price of eggs has skyrocketed and the supply has diminished – due to Proposition 2, the Prevention of Farm Animal Cruelty Act that voters approved.
This was an issue that had a gained a lot of emotional support to not mistreat chickens.
But I warned it would destroy California’s chicken industry with higher costs and frivolous lawsuits.
This is just now beginning to happen.
Prop. 2 requirements that each hen have a 73% increase in space imposed costs of building new structures and new facilities that are passed along to consumers. The cost of chicken feed has also been impacted by regulation and contributes to higher egg prices.
In the Bay Area, the price for a carton of eggs jumped from $1.45 last year to $3.61 this month. And California is producing 20% fewer eggs.
This egg shortage has major consequences for other businesses: such as restaurants, ice cream shops, bakeries, and anyone using eggs.
Raising prices hurts business. Changing recipes hurts also. Panda Express got consumer backlash for pulling eggs from their fried rice and other recipes.
The unintended consequences of bad economic and regulatory decisions is hurting us all.
Those hurt the worst: The poor, those on fixed incomes and small businesses owners.
The solution: stop the insanity of over regulating the economy… and throw out the politicians causing the rising prices.
What do you think? Email me at [email protected].