“It Is Chaotic”: Manufacturers Place Blame For Record Rising Prices On Biden Administration
A new report from the Federal Reserve Bank of Dallas out this week confirmed that an astounding 50.5% of manufacturers had raised prices on finished goods this October. This contrasts with the just 0.7% who lowered prices.
The blame belongs squarely on the Biden administration, according to analysis by Breitbart.
One chemicals manufacturing executive told the outlet: “Fiscal policy by the government is continuing to create supply-chain concerns and leading to increased raw materials prices along with lower customer confidence for finished goods, which is severely weakening the forecast for the long-term viability of the U.S. economy. The potential for recession is ever increasing without major fiscal policy improvement.”
And more inflation looks to be on the way. The measure of price increases for finished goods six-month ahead is 40.6 – double its long-term average of 20.2.
One metals manufacturer said: “It is beginning to feel like we are headed to a slowdown in a few months with inflation kicking in.”
Another manufacturer commented: “Even though Biden terminated some of the incentives to promote folks not to work, there still seems little interest in working. We can teach [the job] if we could interest mostly anyone to get off their bottoms and respond to help-wanted signs. Are we really moving toward a socialist country?”
“We cannot find skilled employees, or nonskilled for that matter,” a third manufacturer commented.
One employer in the printing industry commented: “Inflationary pressures had caused us to raise the price on our production. We routinely pass on raw material costs based on a price index widely used in the industry. This is the first non-raw-material price increase we have had in the 15 years that I have owned this company. This increase and the inflationary implication have added to the customers’ belief that they must order against future price increases. Our customers are deluged with price increases. It doesn’t take long for the inflationary concept to take hold. Labor is unavailable at virtually any level; $13- to $15-per-hour jobseekers (if you can find any) now want $18. No experience. It is chaotic.”
The Dallas Fed admitted in its report: “Supply-chain disruptions continued to plague many manufacturers.”
“Prices and wages continued to increase strongly in October. The raw materials prices remained near an all-time high but edged down to 76.3, while the finished goods prices index rose to a new high of 49.8. The wages and benefits index held near its own series high at 44.1,” the report read.
The next such report comes on November 29.
Fri, 10/29/2021 – 11:15