More Businesses Biden Can Blame for Inflation - The White House still hasn't explained why his inauguration triggered a year of greed.

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Ubiquitous

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Jan 21, 2022, 8:55:25 AMJan 21
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The White House and congressional Democrats have decided that bashing
businesses for rising prices is more politically useful than admitting
Washington fault for the debt-fueled federal spending, misguided incentives
and epic money creation that are driving inflation.

Team Biden has recently blamed food companies like meat and poultry producers
for rising prices. The president and his Democratic allies have also targeted
energy companies.

As prices rise across the economy, every day brings new potential scapegoats
for Mr. Biden to exploit. The Journal’s Sharon Terlep reports on the latest
from Procter & Gamble Co. :

The Cincinnati-based consumer-products giant said sales increased 6%
in the quarter ended Dec. 31 compared with a year earlier, fueled in
part by the company’s largest average price increases since the spring
of 2019.

Executives on Wednesday said its price increases will continue
throughout 2022, and predicted higher profitability and improved
margins in coming quarters even as labor, freight and raw-materials
costs continue to balloon due to the global supply-chain turmoil.

P&G rivals including Unilever PLC and Kimberly-Clark Corp. have also been
lifting prices, giving the president a pretext to examine the entire
consumer-products industry if he wishes to continue avoiding accountability.
As for P&G, Ms. Terlep’s report suggests the White House can also find
numerous targets among the company’s suppliers:

On Wednesday, executives said there is no relief in sight from higher
costs for labor, transportation of goods and raw materials such as fuel,
resin and pulp.

By the president’s logic, rising labor costs across the economy mean that
along with employers, workers have also become more greedy during his
administration.

Goods and services may be scarce, but the president can take comfort in an
abundant supply of potential scapegoats for inflation. The Journal’s Dan
Gallagher reports on Neflix:

The streaming giant is raising its prices for the U.S. and Canadian
markets. The new ones—announced Friday—amount to an 11% increase across
the board for its three subscription plans. That is notably more than
the company’s last round of increases in October 2020, which raised the
price on only two plans and amounted to an average raise of about 8%.

The Journal’s Justin Lahart reports on the real-estate industry:

As of November, the median selling price for a new home was $416,900,
according to the Commerce Department, which compared with $331,800 in
February 2020, before the pandemic struck. Rising material and labor
costs are part of why prices have gone up so much, but there is still
the question of how high a price people will be able to afford in the
year ahead.

And even if consumers can manage to finance a purchase, what will they be
able to afford on those occasions when they leave home? Alexandra Steigrad of
the New York Post reports:

“The Most Magical Place on Earth” is being rebranded as “The Most
Expensive Place on Earth” by angry customers who slammed Disney for
price hikes at its Disney World and Disneyland theme parks.

Disney customers took to Reddit over the past week to rip the Mouse
House’s theme parks over higher admission fees, as well as a subpar
experience that includes more expensive, lackluster food and staffing
shortages...

Late last year, Disney said it would increase ticket prices at
Disneyland and Disney California Adventure in Anaheim, Calif., this
year, noting that its popular single-day ticket price would jump 6.5%
to $164 for admission to one park, while a two-day park hopper pass
would cost $319, up nearly 9 percent.

It’s almost as if the problem is not company- or industry-specific, but
instead a general problem of too many dollars chasing too few goods. As for
the other possible explanation, before announcing the next scapegoat the
White House should first explain how exactly the inauguration of Joe Biden
caused American greed to hit its highest level in decades.

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Let's go Brandon!

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