Starbucks needs more "bucks"
Starbucks raises prices of coffee drinks
As much as economists don't want to admit it, I believe that inflation is happening. I noticed it last year while I was grocery shopping. It seemed that prices had gone up within three months' time by 20% for some items. I was shocked. But then I thought about gas prices and over-the-road truckers and what they must have to charge to provide their services, and of course the prices would have gone up. But every time I read something from the government regarding "economic indicators" and the "strong economy," they seem to always qualify their numbers by saying "not including food and energy costs." And I always roll my eyes and cackle.
Food and energy costs are ALWAYS a huge part of the economy. Starbuck's probably had to raise their prices because the stores that they have in the out-of-the-way spots are not making a profit due to transportation costs to get the coffee, baked goods, and other store goodies to them. And who knows what kind of operating costs any average Starbuck's store might have, like paying your peeps and paying the light bills. You have to sell a lot of coffee to cover that stuff alone, let alone the trucking bill to get the official "Starbuck's" stuff to the store. Notice how the article didn't mention if prices were going up on their food items. I would bet those prices are going up even more than the coffee.
Is inflation here? Some would say no, but I would assume that they aren't the kind of person that has to shop at Wal-Mart. Wal-Mart's numbers have been down since gas prices have been up. And although gas prices are starting to come down, people aren't doing the impluse-buys like they used to, especially poorer people. They have to buy gas instead of that silly plastic thingy at Wal-Mart. So for them, inflation IS here.
Fasten your seatbelts...the next few years are going to be a bumpy ride for almost everyone that isn't on the Forbes Billionaire list.
As much as economists don't want to admit it, I believe that inflation is happening. I noticed it last year while I was grocery shopping. It seemed that prices had gone up within three months' time by 20% for some items. I was shocked. But then I thought about gas prices and over-the-road truckers and what they must have to charge to provide their services, and of course the prices would have gone up. But every time I read something from the government regarding "economic indicators" and the "strong economy," they seem to always qualify their numbers by saying "not including food and energy costs." And I always roll my eyes and cackle.
Food and energy costs are ALWAYS a huge part of the economy. Starbuck's probably had to raise their prices because the stores that they have in the out-of-the-way spots are not making a profit due to transportation costs to get the coffee, baked goods, and other store goodies to them. And who knows what kind of operating costs any average Starbuck's store might have, like paying your peeps and paying the light bills. You have to sell a lot of coffee to cover that stuff alone, let alone the trucking bill to get the official "Starbuck's" stuff to the store. Notice how the article didn't mention if prices were going up on their food items. I would bet those prices are going up even more than the coffee.
Is inflation here? Some would say no, but I would assume that they aren't the kind of person that has to shop at Wal-Mart. Wal-Mart's numbers have been down since gas prices have been up. And although gas prices are starting to come down, people aren't doing the impluse-buys like they used to, especially poorer people. They have to buy gas instead of that silly plastic thingy at Wal-Mart. So for them, inflation IS here.
Fasten your seatbelts...the next few years are going to be a bumpy ride for almost everyone that isn't on the Forbes Billionaire list.
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