Home Blog

Starbucks: The Rise and Fall of the Inflation Café

Starbucks keeps jacking up prices, slashing rewards, and making their loyalty program suck more every year. What used to be a cool spot with solid rewards now just feels like a money trap, where loyal customers are expected to spend more and get way less in return. Their brand? Totally wrecked by greed and bean counters.

by Kerry Lutz
Inflation Café

For years, Starbucks was the go-to spot for coffee lovers who knew they could count on the company to treat their loyalty with respect. They offered a simple rewards program, prices were manageable, and it felt like you were part of something more. Fast forward ten years, and Starbucks has gone from fostering community to fostering corporate greed. It’s not just about coffee anymore—it’s about how much they can squeeze from your wallet while giving you the least in return. If you’re still a loyal customer, brace yourself—Starbucks has been rewarding your loyalty with disloyalty.

The Relentless Price Hikes

Let’s talk about the elephant in the room: the price increases. Over the past decade, Starbucks has ramped up prices every few years. In 2014, a medium-sized cappuccino set you back about $3.65. Now, in 2024, that same drink costs a whopping $5.25. That’s a 44% increase! Meanwhile, your paycheck probably hasn’t gone up by 44%. But for Starbucks, inflation and operational costs are just part of the excuse. Each price hike is just another way for them to cash in on their loyal customers.

Here’s a quick rundown of how they’ve bumped up prices over the years:

Did Inflation Save Us From ‘New Progressive Economics’?

Anti-market progressives dominate the Biden administration. Their policies also help discredit it.

by Christian Britschgi
Reason.com

The Biden era’s high inflation has been terrible for the economy and the country generally. But did it save us from a more permanent progressive takeover of federal government policy?

That’s the tantalizing question hanging over a recent piece published by Vox Senior Politics Correspondent Andrew Prokop that chronicles the rise, and pending fall, of “New Progressive Economics.”

President Joe Biden obviously was not the left’s preferred candidate in the 2020 Democratic primary.

But, as Prokop tells it, he staffed his administration with lots of ultra-progressive wonks and political operatives who wanted to overthrow the Democratic Party’s perceived “neoliberal” consensus on trade and regulation in favor of aggressive anti-trust enforcement, proactive industrial policy, protectionism, and a massive increase in social spending.

Continue Reading at Reason.com…

Inflation, Deflation, and the Great Wealth Transfer

In this live discussion at Porcfest 2024, Chris Martenson and Jeffrey Tucker critique the economic and monetary policies of recent years, highlighting inflation, taxation, and government manipulation. They explore the lasting consequences of these policies on purchasing power, healthcare, and generational wealth.

by Dr. Chris Martenson
Chris Martenson’s Peak Prosperity

In this conversation, Chris and Jeffrey Tucker discuss the far-reaching consequences of U.S. monetary policy, particularly following the 2008 financial crisis. Chris begins by highlighting how policies of inflation, taxation, and deflation have been used, citing Lenin’s strategy to undermine a capitalist economy. He expresses concern about the state of the country, including the handling of borders, elections, and the younger generations’ ability to build wealth. He criticizes the U.S. Federal Reserve’s decisions, particularly under Ben Bernanke, for artificially inflating housing prices and thereby making homeownership increasingly inaccessible for younger people.

Continue Reading at PeakProsperity.com…

Pennsylvania GOP Senate Nominee Dave McCormick: ‘Bad Policy’ From Biden-Harris, Bob Casey Has Driven Inflation

by Nick Gilbertson
Breitbart.com

Pennsylvania Republican Senate candidate Dave McCormick blasted Sen Bob Casey (D-PA) during their debate Tuesday night for supporting legislation signed into law by the Harris-Biden administration that led to crippling inflation.

While fielding a question about the causes of the 40-year-high inflation reached under the Biden-Harris administration, McCormick pointed to the administration’s extreme spending, which was supported by Casey.

WATCH — Trump Brings Back Jeb Bush “Low-Energy” Label for Pennsylvania Democrat Bob Casey:

Continue Reading at Breitbart.com…

The Next Wave(s) of Inflation

by Adam Sharp
Daily Reckoning

Have you ever been caught in a set of gnarly waves at the ocean? The kind where you get smashed by a breaker, come up for air and there’s another big one waiting for you at the surface?

This is a solid metaphor for inflationary periods. They don’t happen like a single big tsunami.

They are typically processes that play out in stages over a decade or more. Policymakers try various fixes, and most fail or only provide temporary relief.

Let’s take a look at the three waves of America’s 1970s inflation…

Continue Reading at DailyReckoning.com…

ECB Rate Cuts: ‘We’re Breaking the Neck of Inflation,’ Says Lagarde

by Piero Cingari
EuroNews

Inflation is on track to hit the medium-term 2% target in 2025. The ECB remains data-dependent, with no pre-commitment to future rate changes.

In a press conference following the European Central Bank’s (ECB) decision to cut interest rates by 25 basis points, President Christine Lagarde hailed the central bank’s progress in tackling inflation, declaring figuratively: “We’re breaking the neck of inflation.”

The deposit facility rate, the rate at which the ECB steers monetary policy, has now fallen to 3.25%, marking the lowest level since May 2023.

Why the ECB decided to cut interest rates

Lagarde highlighted several key factors that drove the ECB’s decision to cut rates in October.

Continue Reading at EuroNews.com…

Treasury Secretary Janet Yellen Warns “Sweeping, Untargeted Tariffs” Would Reaccelerate Inflation

by Aimee Picchi
CBS News

Treasury Secretary Janet Yellen will warn in a Thursday speech that the type of tariffs planned by former President Donald Trump, if he were to retake the White House, would reignite inflation and harm the economy.

The remarks from Yellen, which she will deliver when she speaks at 3 p.m. ET today at the Council on Foreign Relations in New York, will take aim at the potential economic impact of Trump’s proposals for 10% across-the-board levies on all products imported into the U.S. from overseas, as well as tariffs of 60% or more on imports from China.

While Yellen didn’t specifically name Trump, she described the dangers of “sweeping, untargeted tariffs” in excerpts of the speech released early Thursday by the Treasury Department.

Continue Reading at CSBNews.com…

ECB Cuts Rates as Expected with Disinflation “Well On Track”. Keeps Guidance Unchanged

from Zero Hedge

As expected by literally every economist, moments ago the ECB cut its three key rates by 25bps for the second consecutive meeting, in a show of support to the rapidly shrinking European economy and saying it did so because “incoming information on inflation shows that the disinflationary process is well on track” and adding that “the inflation outlook is also affected by recent downside surprises in indicators of economic activity. Meanwhile, financing conditions remain restrictive.”

Specifically, the ECB cut its Marginal Lending Facility from 3.90% to 3.65%, the Refinancing rate from 3.65% to 3.40% and the Deposit Rate from 3.50% to 3.25%.

Continue Reading at ZeroHedge.com…

Trump Tariffs, Deportations Could ‘Reignite’ U.S. Inflation, Economic Studies Say

[Ed. Note: What a headline… The CBC is Canada’s government-owned-&-operated news source… Let this stupidity really sink in for a minute… DEPORTATIONS cause inflation… Ok, that makes total sense. We have some real ‘Milton Friedman level geniuses’ working at the CBC. These are the same geniuses who told Canadians that food prices were going up due to climate change… It’s easier than admitting your reckless fiscal policy is to blame.]

from CBC News

Food, Rent, Electricity Prices Soar Under Joe Biden and Kamala Harris

by Amy Furr
Breitbart.com

Americans have been feeling the pain of rising costs of everyday necessities since President Joe Biden (D) and Vice President Kamala Harris (D) took office in January 2021.

Prices for food, rent, and electricity have trended upward under the Biden and Harris administration, according to data from the Federal Reserve Bank of St. Louis.

The price of groceries is up 22.6 percent, rent is up 23.2 percent, and electricity is up 28.3 percent.

It is important not note that Harris is campaigning with her running mate, radical leftist Gov. Tim Walz (D-MN), against former President Donald Trump (R) and his running mate, Sen. JD Vance (R-OH), for the White House in 2024.

Continue Reading at Breitbart.com…

Global Inflationary Episode Offers Lessons for Monetary Policy

The inflation surge followed a unique disruption to the global economy, but it still offers important lessons for central banks

by Jorge Alvarez, Alberto Musso, Jean-Marc Natal, Sebastian Wende
IMF

The inflation surge over the past three years followed a unique disruption to the global economy.

Pandemic lockdowns initially tilted demand away from services and toward goods. But this came at a time when unprecedented fiscal and monetary stimulus boosted demand, and many firms were not able to ramp up production fast enough, resulting in mismatches between supply and demand and rising prices in some sectors.

For example, ports were stretched to or beyond their capacity, partly due to pandemic-related staffing shortages, so as demand for goods surged, this resulted in backorders. When economies reopened, demand for services came roaring back and Russia’s invasion of Ukraine sent commodity prices soaring, in turn pushing global inflation to its highest level since the 1970s.

Continue Reading at IMF.org…

Is the Inflation Monster Still Hiding Under the Bed?

by Mike Maharrey
Money Metals Exchange

The so-called grownups tell us everything is fine. The inflation monster is gone now.

Or is it?

Sure, most people don’t believe it’s there, but I think the inflation monster is hiding under the bed. The adults in the room say it’s not there. But kiddos, there are signs — if you look close enough.

The headline number in last week’s September Consumer Price Index (CPI) report provides a false sense of security. Annual price inflation dropped to 2.4 percent, the lowest since February 2021.

Sounds as if we’re perfectly safe lying in our bed, right?

But look and listen a little more closely.

Continue Reading at MoneyMetals.com…

U.S. Drinking Rates Hit Highest Level Since 1970s Inflation Storm as Tequila Demand Soars

from Zero Hedge

A broad overview of America’s beer, spirits, and wine consumption reveals a steady increase since the Dot Com bust, with per capita levels approaching the highs last seen during the inflation-driven misery storm of the 1970s. Economic misery and rising alcohol consumption often go hand in hand.

“During periods of recession, US per capita alcohol consumption from beer, spirits and wine has been very resilient. Total beer volume declined in 2009 whilst spirits volume continued to grow,” Goldman’s Olivier Nicolaï told clients in a note on Tuesday.

Nicolaï noted, “Within overall US alcohol consumption, beer has been steadily losing share to spirits over the last 20 years. Within the spirits category, tequila has been gaining market share at the expense of vodka over recent years.”

Six decades of US per capita alcohol consumption data shows how war and economic misery can impact drinking rates among consumers. From the 1960s to the 1970s, the rate of alcohol consumption soared on a per capita basis, likely due to foreign wars and high inflation.

Continue Reading at ZeroHedge.com…