Price gouging? I think not!

"Sorry Kamala - you are barking, or cackling, up the wrong tree. If you want to see the real reason for inflation, just look in the mirror."   

A bit of writer's privilege if it is okay. I need to tell a bit of my story first. Don't worry - it is germane to the article I am going to produce this morning. 

When I left the defense industry after 25 years, I needed a break. I also needed a new path in my life. So, I had saved some money and decided to build the inside of my new detached garage from the ground up. It was a great experience, lots of fun, and I will never forget it. But as the saying goes - when the money is gone, so is the fun. It was time to go back to work.

I was hired by a company called Nash Finch. They were a smallish player in the wholesale food industry. After all those years in defense, what did I know about the food industry? Nada. I was a blank slate. But I worked for a good guy who spent his life working with food. He taught me quite a bit. 

The first thing he taught me was the razor thin margin that most wholesalers and food retailers work with. A percent to maybe three was common for margin. I was quite shocked. How in the world could any organization operate with margins that tight? Very frugally.

The pic above is something very rare. Since I was in charge of buying all the electronics for the company, Nash dug deep and found some pennies to send me to a downtown electronics event. It was fun, I learned quite a bit, and even took on a Darth Vader interloper!

But here is my point of this article. Kamala Harris wants to go after the grocery stores for "price gouging" the consumers in this time of inflation. I have worked in the food industry. I know how frugal they are. Raising the price for a can of peaches a penny or two may make the store uncompetitive for that product. Yes, some shoppers watch prices that closely. I can only imagine it is worse today.

Inflation is caused by government spending too much money and needing to print more of it. Period. Too much money chasing too few goods. This has nothing to do with anybody "gouging" Sorry Kamala - you are barking, or cackling, up the wrong tree. If you want to see the real reason for inflation, just look in the mirror.