Cargo Is Piling Up Everywhere, and It's Making Inflation Worse

Re:Cargo Is Piling Up Everywhere, and It's Making Inflation ... by fpoling on Tuesday June 22, 2021 @04:56AM (#27589434)

There was a study in Denmark that showed that only about 20% of a price one pays in the supermarket went to producers of the food and like 10% was spent on transport. 25% were taxes, 25% was spent on advertisements, the rest was the shop take to pay workers, location rent and the profit. I doubt in UK it is much different.

So if the transportation will be twice expensive, it will translate into price increase only of 10%.

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Re:Cargo Is Piling Up Everywhere, and It's Making Inflation ... by sofixa on Tuesday June 22, 2021 @09:54AM (#27591624)

> So if the transportation will be twice expensive, it will translate into price increase only of 10%.

Which can lead to riots. Imagine the worst off, the people making minimum wage and similar, who see their food increase in price 10% across the board. The spark for the Yellow Vests in France movement was a small increase in taxes on fuel : `tax increase had been 7.6 cents per litre on diesel and 3.9 cents on petrol in 2018, with a further increase of 6.5 cents on diesel and 2.9 cents on petrol planned for 1 January 2019`

Those protests raged for more than a year, and were stopped only by the pandemic, and caused billions of euros of various damage and have left multiple people dead and wounded.

And fuel, as vital as it might be in rural areas to move, is significantly less important than food which even people who can move around on bike or public transit need to survive.

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Re:Cargo Is Piling Up Everywhere, and It's Making Inflation ... by ClumsyPilot on Tuesday June 22, 2021 @11:41AM (#27593096)

"Imagine the worst off, the people making minimum wage and similar, who see their food increase in price 10%"

By that logic there should have been a civil war after 2008.

The changes proposed would provide jobs to the worst off, that's a fairly reasonable trade, which you may or may not be inclined to take

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Re:Cargo Is Piling Up Everywhere, and It's Making Inflation ... by fpoling on Tuesday June 22, 2021 @02:38PM (#27595414)

Notice how 25% of price is spent on various forms of advertisement. Most owners of supermarkets are not stupid. If they see that they cannot pass fully transportation price increase directly to consumers they may cut advertising budgets.

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