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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:

D.C. Workers Spend $350 On Lunches Monthly Amid Inflation

by Amy Furr
Breitbart.com

People working in Washington, DC, are spending a lot of money on lunches as inflation continues to batter Americans in the Biden-Harris (D) administration’s economy.

A recent study found that employees in the nation’s capital are spending $350 on work lunches per month, Fox 5 reported on Thursday:

[…] The information is found in ezCater’s 2024 Lunch Report. “Washingtonians spend $350 on work lunches per month, including lunch from restaurants and groceries for making lunch,” it states.

The study also noted that “79% of Washingtonians’ lunch habits are affected by inflation, with 35% opting for cheaper lunch options and 39% buying lunch less frequently.”

Continue Reading at Breitbart.com…

Inflation is Not Dead, It’s Just Resting

by Edward Chancellor
Reuters.com

LONDON, Oct 18 (Reuters Breakingviews) – Over the past three years inflation has gone from “transitory” to “persistent” to, well, boring. Across the developed world annual price increases are returning towards the subdued 2% level targeted by many central banks. Commentators are talking of the Goldilocks scenario, where the economy, like the porridge in the fairy tale, is neither too hot nor too cold.

Don’t break out the champagne yet, though. There’s a long history of monetary policymakers prematurely celebrating the end of inflation, only to be caught off guard by its sudden resurgence. Perhaps the best example comes from the early 1970s.

Continue Reading at Reuters.com…

No Central Bank Wants to Stop Price Inflation

by Daniel Lacalle
Mises.org

Many citizens want more government control of the economy to curb rising prices. It is the worst strategy imaginable. Interventionist governments never reduce consumer prices because they benefit from inflation, dissolving their political spending commitments in a constantly depreciated currency. Inflation is the perfect hidden tax. The government makes the currency less valuable by issuing more units of fiat money, partially dissolves its debt in real terms, collects more taxes, and presents itself as the solution to rising prices with subsidies in an increasingly worthless currency. That is why socialism and hyperinflation go hand in hand.

Socialism rejects human action and economic calculation and sells a false image of a government that can create wealth at will by issuing more units of fiat currency. Obviously, when inflation arrives, the socialist government will use its two favorite tools: propaganda and repression. Propaganda, which accuses stores and businesses of driving up prices, and repression, which occurs when social unrest intensifies and citizens legitimately hold governments accountable for scarcity and high prices, are the two main strategies.

Continue Reading at Mises.org…

Used Vehicles Getting Ready to Turn Into Inflation Headwind, After Historic Plunge Had Powered Core CPI “Deceleration”

by Wolf Richter
Wolf Street

The used-vehicle pipeline is messed up for years to come.

Used vehicle prices – retail and wholesale – had performed a historic 50%-plus price spike between mid-2020 through mid-2022 when consumers were suddenly willing to pay whatever; dealers saw it and jacked up their prices. And knowing that they could extract record profits from those bedazzled consumers no matter what the price, dealers were willing to pay whatever at auctions to replenish their inventory. But starting in 2022, consumers gradually came to, and dealers had to respond. What followed was a historic plunge in used vehicle prices, both retail and wholesale, giving up about half of the price spike.

Continue Reading at WolfStreet.com…

Carney On ‘The Bottom Line’: Biden-Harris Inflation Devastated Union Wages

by Pam Key
Breitbart.com

Breitbart News economics editor John Carney said Wednesday on Fox Business Network’s “The Bottom Line” under the Biden-Harris administration, union members saw their wages devastated by inflation.

Co-host Sean Duffy said, “You see unions, maybe they don’t endorse, or they endorse Trump, but they’re moving away from the Democrat Party. It fits hand-in-glove with the tariff conversation that Donald Trump’s been having with the media and with the American people. I think these workers believe that if you protect the American worker or at least give us fairer trade with the rest of the world, we’re winners as the American worker, which is why they’re supporting Trump and not Harris. Am I wrong?”

Continue Reading at Breitbart.com…

Peter Schiff: 2% Inflation is Fantasy Land

from Schiff Gold

Last week, Peter appeared on Soar Financially, where he was interviewed by host Kai Hoffmann. The two dive into gold’s upward trajectory and its historical precedents, the market’s misguided optimism when it comes to the American economy, and recent events in domestic politics and international banking.

Peter starts with his perennial reminder: public sector jobs do not boost the economy, and recent jobs numbers are intended to support a false narrative.

“Government jobs are not a sign of a strong economy. In fact, they weaken an economy because we have to pay for those jobs. They’re non-productive jobs. They result in bigger deficits, higher inflation. That’s really all we have– we have inflation that masquerades as growth.”

Continue Reading at SchiffGold.com…

In a Rare Candid Moment, Three Central Bankers Talk Up Gold

by Mike Maharrey
GoldSeek

While central banks around the world have been aggressively adding gold to their reserves, central bankers don’t tend to talk much about the yellow metal.

Three central bank officials went off script at the London Bullion Market Association conference in Miami.

Reserve managers from the central banks of Mexico, Mongolia, and the Czech Republic sat together on a panel at the conference, and all three indicated their countries plan to add even more gold to their reserves in the near future as geopolitical tensions increase and global interest rates decline, creating more inflationary pressure.

Banco de México international reserves director Joaquín Tapia said, “Given the context that we are facing right now — lower rates, your political tension, U.S. election, a lot of uncertainty — maybe the share of gold in our portfolios could be increasing as well.”

Continue Reading at GoldSeek.com…

Yellen: ‘Very High’ Cost of Living Has Existed ‘For a Long Time’, Before Biden

by Ian Hanchett
Breitbart.com

During an interview aired on Thursday’s broadcast of MSNBC’s “11th Hour,” Treasury Secretary Janet Yellen stated that people are unhappy with their personal finances because “the cost of living is very high.” But that’s been the case “for a long time. But the inflation that we saw after the pandemic really exacerbated it for so many people.”

Host Stephanie Ruhle asked, “By most major measures, the economy is doing very well. Yet, most people in America, many people in America still don’t feel good about their personal finances. What do we do about that, how do we solve for it?”

Yellen answered, “Well, I think the cost of living is very high. This has really been true for a long time. But the inflation that we saw after the pandemic really exacerbated it for so many people.

Continue Reading at Breitbart.com…

Landing Cancelled? Retail Sales Jump, Prior Months Revised Up, Boost Atlanta Fed GDPNow to +3.4% Inflation-Adjusted GDP Growth

by Wolf Richter
Wolf Street

This demand growth is adding to renewed inflation concerns. The huge waves of immigrants in 2022-2024 are part of this demand growth.

Upon the release of the retail sales data today, the Atlanta Fed’s GDPNow’s estimate for inflation-adjusted GDP growth in Q3 rose to 3.4%, nearly entirely because the inflation-adjusted growth of its consumer spending component got boosted by retail sales today.

Continue Reading at WolfStreet.com…

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…