Tag Archives: Consumer

The March Inflation Numbers

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On Wednesday, MSNBC posted the March Inflation Numbers. As any consumer can tell you, inflation is still and issue.

The article reports:

  • The consumer price index, a key inflation gauge, rose 3.5% in March, higher than expectations and marking an acceleration for inflation.
  • Shelter and energy costs drove the increase. Energy rose 1.1% after increasing 2.3% in February, while shelter costs were higher by 0.4% on the month and up 5.7% from a year ago.
  • Following the report, traders pushed the first expected rate cut out to September, according to CME Group calculations.

The article notes:

Stocks slumped after the report while Treasury yields spiked higher.

Shelter and energy costs drove the increase on the all-items index.

Energy rose 1.1% after climbing 2.3% in February, while shelter costs, which make up about one-third of the weighting in the CPI, were higher by 0.4% on the month and up 5.7% from a year ago. Expectations for shelter-related costs to decelerate through the year have been central to the Fed’s thesis that inflation will cool enough to allow for interest rate cuts.

Food prices increased just 0.1% on the month and were up 2.2% on a year-over-year basis. There were some big gains within the food category, however.

The measure for meat, fish, poultry and eggs climbed 0.9%, pushed by a 4.6% jump in egg prices. Butter fell 5% and cereal and bakery products declined by 0.9%. Food away from home increased 0.3%.

Elsewhere, used vehicle prices fell 1.1% and medical care services prices rose 0.6%.

The past three years or so have not been a good time for most Americans. Inflation has increased the cost of simply maintaining an average lifestyle. It will be interesting to see if inflation can be brought under control by November and if people will vote their pocketbooks.

Want A Good Deal On A Used Electric Vehicle?

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On Tuesday, Autoblog reported the following:

Electric vehicles were already considered unappealing by a section of the car-buying public. Now their image could take another hit as rental giant Hertz dumps 20,000 of them, mainly Teslas, for gas-powered cars.

Hertz, the largest U.S. fleet operator of EVs, has blamed the sale on high repair costs and weak demand for the vehicles it offers on rent.

Analysts and industry experts believe the move will affect the second-hand market for EVs and dissuade buyers who are already rethinking big purchases due to higher borrowing costs.

“The larger impact of Hertz EV fire sale is the perception hit to the technology,” said Karl Brauer, analyst at used-car aggregator iSeeCars.com.

“Mainstream consumers are already hesitant to buy an EV, and this news only supports their concerns.”

The higher costs associated with repairing EVs stem from a lack of sufficient expertise in dealing with such vehicles and challenges in getting the replacement parts as they are still very new, industry experts said. 

Hertz CEO Stephen Scherr flagged elevated costs caused by damages to certain EVs, particularly Teslas, last year at a conference. In announcing the liquidation of Hertz’s EV fleet, Scherr also blamed the high repair costs on Tesla for not offering to discount bulk purchases of replacement parts the way other automakers do.

Tesla and Polestar, whose cars are popular with car rental firms, did not respond to a request for comment. Car rental firms Avis and Enterprise also did not respond to a query on their EV strategy.

I love the concept of an electric vehicle. I love the idea of being able to park my car in the garage at night and have it fully charged in the morning–never having to stop for gas. However, I worry about fire danger–I don’t want my house to burn down because I didn’t want to buy gas. I also worry about the rising cost of electricity and how economical an electric car would be in the future. I also worry about having to spend thousands of dollars to replace a battery on a used car. Until those issues are addressed fully, I will simply stand back and admire the acceleration that comes with an electric car.

Good News For Impatient People Who Like Clean Dishes

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Yesterday The Washington Examiner posted an article about dishwashers–the kind that are installed in with your kitchen cabinets and take forever to clean the dishes about as well as your average cat. I realize that does not apply to all dishwashers, but since the environmentalists got involved, it applies to a lot of them. Well, that is about to change.

The article reports:

Consumers outraged about slow dishwashers are staunchly backing an Energy Department move, over industry objections, to create a new category of products that feature a one-hour washing cycle.

Individual consumers have flooded the public comment docket in support of the Energy Department proposal, which grants a petition made by the Competitive Enterprise Institute, a free-market think tank. The agency proposal would establish a separate product class for dishwashers that clean and dry dishes within one hour, an action that would exclude those appliances from current energy and water conservation standards until separate rules are crafted.

The Energy Department could finalize the proposal as soon as next year.

“A First World country deserves a dishwasher that can actually clean soiled dishes in an hour – as it used to have before this regulation was enacted to ‘save’ us energy and money. It doesn’t,” one individual consumer, Chad Anderson, wrote in a comment submitted this week.

The article concludes:

The Energy Department, though, in its proposal said data and customer complaints show many consumers would value “shorter cycle times to clean a normally-soiled load of dishes.” Watkins argued that no dishwasher models currently exist on the market that have a normal one-hour cycle for washing and drying.

Mauer said a number of factors, including consumer preferences for more efficient and quieter dishwashers, have impacted the cycle times.

And she said the lack of standards for the new product class also means the Energy Department’s move likely violates a provision in the Energy Policy and Conservation Act, which prohibits the agency from loosening the efficiency standards.

Appliance makers also say the product class isn’t necessary, and they say the Energy Department action creates new regulatory burdens that will cost manufacturers.

Creating a new product class would lead to stranded investments for companies, “as manufacturers would essentially be required to abandon” innovations in efficiency they’d made to comply with the previous standards, the Association of Home Appliance Manufacturers wrote in comments.

The group, which represents more than 150 companies, wrote it has raised concerns about dishwasher cycle times previously but stressed this wasn’t the venue to address them.

Watkins of the Competitive Enterprise Institute, however, argued appliance makers don’t want the Energy Department to change the current limits because it would open up the market to new companies that haven’t spent the money to comply with conservation limits.

“They now view the regulations in some way as a barrier to entry” into the market, Watkins said. He also suggested that creating a new product class could relieve some of the pressure manufacturers face from ever-tightening standards due to the law’s “one-way ratchet.”

Plus, it’s hard to argue with the overwhelming consumer support, Watkins said, pointing to a recent survey the group conducted of more than 1,000 customers showing a majority prefer dishwasher cycles of one hour or less.

“Where can I get a MDGA* hat? (*Make Dishwashers Great Again),” one consumer wrote in the comments.

What has happened to dishwashers in recent years is another example of the government deciding what is good for the consumer without giving the consumer a voice in the decision. The idea of a dishwasher that effectively cleans dishes in an hour is a winner. Government regulation and interference kept it from being a reality.

Helping Solve The Healthcare Problem

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It is becoming obvious that the Democrats in Congress are not really interested in solving problems. They have been absent on the border crisis and they have been absent on healthcare and health insurance. Meanwhile, President Trump is making gains in both of those areas.

Yesterday John Hinderaker at Power Line Blog posted an article about a recent change in health insurance regulations announced by the Department of Health and Human Services. The change will allow businesses to fund employees who buy health insurance on the individual market–something that until now has been illegal.

The article includes the announcement:

Today, the U.S. Departments of Health and Human Services, Labor, and the Treasury issued a new policy that will provide hundreds of thousands of employers, including small businesses, a better way to provide health insurance coverage, and millions of American workers more options for health insurance coverage. The Departments issued a final regulation that will expand the use of health reimbursement arrangements (HRAs). When employers have fully adjusted to the rule, it is estimated this expansion of HRAs will benefit approximately 800,000 employers, including small businesses, and more than 11 million employees and family members, including an estimated 800,000 Americans who were previously uninsured.
***
Under the rule, starting in January 2020, employers will be able to use what are referred to as individual coverage HRAs to provide their workers with tax-preferred funds to pay for the cost of health insurance coverage that workers purchase in the individual market, subject to certain conditions. … Individual coverage HRAs are designed to give working Americans and their families greater control over their healthcare by providing an additional way for employers to finance health insurance.
***
The HRA rule also increases workers’ choice of coverage, increases the portability of coverage, and will generally improve worker economic well-being. This rule will also allow workers to shop for plans in the individual market and select coverage that best meets their needs. … [T]he final rule should spur a more competitive individual market that drives health insurers to deliver better coverage options to consumers.

Moving healthcare and health insurance back to free market principles will be better for everyone–it will increase competition and eventually drive costs down. This is a step in the right direction.

About That Privacy Thing

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Breitbart is reporting today that Google failed to tell consumers about a secret microphone in its home security product, Nest Secure. So your security system may be eavesdropping on you. Great.

The article reports:

According to Business Insider, Google announced this month “users would now be able to use Google Assistant” on Nest Secure devices.

However, “users didn’t know a microphone even existed on their Nest Secure devices to begin with.

Google apologized for failing to disclose the “secret” microphone on Tuesday, claiming it was due to an “error.”

“The on-device microphone was never intended to be a secret and should have been listed in the tech specs. That was an error on our part,” declared a Google spokesman. “The microphone has never been on, and is only activated when users specifically enable the option.”

“Security systems often use microphones to provide features that rely on sound sensing,” the spokesman explained. “We included the mic on the device so that we can potentially offer additional features to our users in the future, such as the ability to detect broken glass.”

There is a saying that you should never put anything in writing that you wouldn’t want your mother to see as a headline in The New York Times. I think we need to change that saying to never say anything within range of your security system, your cell phone, or Alexa that you wouldn’t want to see as a headline in The New York Times.

How Is The Economy Doing?

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The mainstream media spends a lot of time criticizing President Trump. He is characterized as someone who is totally incompetent, undisciplined in his decision making, volatile, stupid, uneducated, etc. Yet it is somewhat amazing what this man has accomplished in less than two years–with the drag of constant accusations and investigations, a hostile press that simply ignores anything he has accomplished, and a Congress that has been less than supportive.

The Conservative Treehouse posted an article today that highlights how the Trump economy is doing.

Here are some of the highlights:

As CTH anticipated the first tabulated holiday sales report via Mastercard® shows the results of a very strong consumer confidence level.  The first report highlights a very strong 5.1% increase in holiday purchases:

“Wall Street is running around like a chicken with its head cut off, while Mr. and Mrs. Main Street are happy with their jobs, enjoying their best wage increases in a decade”…

~ Craig Johnson, president of Customer Growth Partners

…Wall Street is being impacted by their multinational reliance which is heavily weighted toward global investments. Main Street is driven by the actual U.S.A. checkbook economic factors. This is the modern disconnect. After decades of Wall Street companies investing overseas, and generating investment products that are fundamentally detached from the U.S. economy, they do not benefit from a strong U.S. economy. However, Main Street directly gains from internal U.S. economic growth.

…If you understand the basic elements behind the new dimension in American economics, you already understand how three decades of DC legislative, monetary and regulatory policy was structured to benefit Wall Street and not Main Street. The intentional shift in monetary policy is what created the distance between two entirely divergent economic engines.

The support of Main Street instead of Wall Street is one of many reasons the Washington establishment hates President Trump. Under establishment politicians Wall Street and rich investors have done very well in recent years–at the expense of Main Street. President Trump has changed that. I strongly suggest that you follow the link and read the entire article at The Conservative Treehouse. It explains in detail how President Trump’s economic policies have changed the dynamics of the American economy.

The article concludes:

Bottom Line: U.S. companies who have actual connection to a growing U.S. economy can succeed; based on the advantages of the new economic environment and MAGA policy, specifically in the areas of manufacturing, trade and the ancillary consumer benefactors.

Meanwhile U.S. investment assets (multinational investment portfolios) that are disconnected from the actual results of those benefiting U.S. companies, and as a consequence also disconnected from the U.S. economic expansion, can simultaneously drop in value even though the U.S. economy is thriving.

The American economy is improving for average Americans. The elites who have profited greatly in recent years while the rest of us struggled do not like that. Be prepared for an outright onslaught of negative news about President Trump as the middle class continues to prosper.

It’s All In What You Name The Bill

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On Tuesday Time.com posted an article about the Transparent Airlines Act, which had just passed in the House of Representatives. The law allows airline ads to exclude government fees. Therefore the consumer could easily be misled as to how much his flight will cost.

The article reports:

As MONEY’s Brad Tuttle reported in April, $61 dollars of a typical $300 flight comes from federal taxes–20% of the overall ticket price. Under the new law, airlines could ignore that portion of the fare and advertise the same flight at $239. Could anyone actually buy that flight for $239? Of course not.

One argument by those who favor the law is that it will allow consumers to see exactly how much government fees add to the price of airline tickets. That may be true, but when I buy an airline ticket, I want to know exactly how much it will cost me–not a number that may actually be 20 percent less than the actual cost.