To: Charles Hughes who wrote (13862 ) 11/2/1997 1:17:00 AM From: Gerald R. Lampton Read Replies (1) | Respond to of 24154
Trees don't grow to the sky. Here's some food for thought.businessweek.com Do I think this is a likely outcome? With all due respect to Business Week, I don't think so. I think the reports of inflation's demise are greatly exaggerated. I guess the people who write these articles don't go to the local supermarket, where milk is up to $1.94 a half-gallon, or the gas station, where the price per galloon is $1.50 and rising. Nor have they looked at houses lately in places like Silicon Valley or West L.A., or tried to buy a car in our quota-protected, big-three dominated market. A tube of toothpaste? Price is up 20 percent over last year. A bagel that cost 39 cents a year ago is now 47 cents. A yougert at the local shop used to cost $2.00 a couple of weeks ago now costs $2.50. The local small business owners are getting greedier and more daring in their price increases and disregard for cusotmer service, and they are getting away with more and more. Who cares if one customer is unhappy with your service or thinks your price increase is unjustified, when there are 10 more flush with cash waiting to buy your product? It seems like the only thing going down in price is computing power.;) Oh, that's right. All these price increases are due to "special factors" and "seasonal variations." Where, and for how long, have I heard that story before? If deflation is such a problem, how come the dollar of todays buys only a shrinking fraction of what it bought as recently as 1982? Isn't what we are really facing a slow, relentless, long-term inflation? Although price increases have decelerated from the 1970's, they have not really stopped. I know this sounds cruel, and it is for some workers, but, for the rest of us, what the country needs right now is a good recession, to remind the shop owners and business people of this country who is king. Where's Alan Greenspan when we need him?