How egg prices work (according to progressives)
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Its funny, because its almost always certain to be a factor. Executives and the guys near the top aren't going to take pay cuts if profits aren't the same this fiscal year, they will push those costs down the chain to the lower tier worker or the consumer. Anyone whose ever worked for a corporation has seen at least 1 memo about "company lost too much money (due to its own idiocy), cutting basic necessities to do the job."
But we can't even begin to have that conversation, because the Left will take that inch and run the mile of ignoring every other factor involved.
Yes. Also, companies profiting isn't a problem when the market is highly competitive. The problem of profit arises when there is limited competition and that almost is always caused by government involvement, due to corruption or incompetence. The leftists solution to corporate greed tends to be more government involvement which then just hinders the market and exasperates the same problem they are trying to fix. Furthermore, high prices in themselves aren't necessarily a bad things, it's just a reflection of higher demand give a supply. This is good because the higher prices lead to higher profits which then leads to higher supply as more people try to produce the product in order to benefit from the higher profits. Trying to set prices tends to just lead to supply shortages which just again, exasperates the problem.
In almost all circumstances, leftists just make the problems worse and don't ever understand the underlying problems that need fixing.
Why is the supply of eggs low given the demand such that prices can be increased? I suspect some sort of government blunder. That's what needs to be fixed. Leftists instead will try to limit prices which then doesn't tackle the supply problem and in fact by limiting prices, so you get shortages. Hardly a fix.
Agreed on all points, except one.
This applies in a free market, but the amount of red tape and various agencies who exist to "approve" or "license" your product before it can be sold make this nearly impossible unless you were already in the industry. In food, this is the FDA or various wildlife marshals and others who exist to mostly run defense for their buddies while making anyone else's life hell who try to move into the market.
While I understand the reason for their existence, and we are probably better off with them than without, their execution leaves a lot of problems on the table. One of which is prices having an artificial inflation that the market cannot do anything to combat.
Yeah, I meant the above point if there exists competition. If there's high barriers of entry because of red-rape then higher prices don't change supply, obviously. Though, I would argue it probably still does to a degree, albeit not very much. The solution though isn't price controls, but removing the red tape.