I'm not an economist, but I play one on my blog. Inflation, which is rising costs without offsetting wage increases to keep everyone afloat, is through the roof. Will it get better anytime soon based on Biden policies? The answer is...no! There's no end in sight at this point.
What do you think happens when there aren't enough employees to keep a business afloat? They begin offering higher wages to convince people to work for them versus someone else. And do you think that a company will eat their profits due to this added expenditure? Most of them, regardless of what democrats say, run off of pretty thin margins because of competition. Add to this all the supplies they use to manufacture their goods or basically to run their companies in general, will have gone up, as they are now. Many retailers have boosted security. Will they eat these costs?
So, the answer is no, they'll increase the costs for their goods and/or services. Because the costs will be higher across the board, as it's growing now, it won't matter if an employee is making $2 more per hour, at this point, they'd still be going backwards in discretionary income.
So, does anyone win here? I can tell you there's one entity that will be bringing in more revenues and that's the government at all levels. The higher the costs, the more tax revenues they make and the more our legislators can spend to buy votes. When personal property is valued much higher, your city and county make out with higher personal property tax revenues.
It's short-sighted because sales won't sustain when retails continue to jump. People won't be able to afford some of the things they were paying for in the past which will inevitably lead to less tax revenues, but no one ever said, well besides democrats, that they ever have a good long-term strategy regarding pretty much any topic.
What do you think happens when there aren't enough employees to keep a business afloat? They begin offering higher wages to convince people to work for them versus someone else. And do you think that a company will eat their profits due to this added expenditure? Most of them, regardless of what democrats say, run off of pretty thin margins because of competition. Add to this all the supplies they use to manufacture their goods or basically to run their companies in general, will have gone up, as they are now. Many retailers have boosted security. Will they eat these costs?
So, the answer is no, they'll increase the costs for their goods and/or services. Because the costs will be higher across the board, as it's growing now, it won't matter if an employee is making $2 more per hour, at this point, they'd still be going backwards in discretionary income.
So, does anyone win here? I can tell you there's one entity that will be bringing in more revenues and that's the government at all levels. The higher the costs, the more tax revenues they make and the more our legislators can spend to buy votes. When personal property is valued much higher, your city and county make out with higher personal property tax revenues.
It's short-sighted because sales won't sustain when retails continue to jump. People won't be able to afford some of the things they were paying for in the past which will inevitably lead to less tax revenues, but no one ever said, well besides democrats, that they ever have a good long-term strategy regarding pretty much any topic.
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