LETTER: Cause of inflation is simple: businesses want more profit

To Ozaukee Press:
    It is said that inflation is caused by too much money chasing too few goods. It’s more complicated than that. Interpreting market forces is mostly determined by sales and marketing individuals in an enterprise. It is ultimately a decision—there is no force making them raise prices.
    My dad, a dairy farmer in the Town of Belgium, often reflected on the disconnect between the price of milk he received and the price at retail, where the price often has little to do with anything other than the opportunity to make profit. I’m not suggesting that profit is a bad thing. It is simply that the allure of getting more is a driving force in determining price.
    Some blame federal spending on the current inflation in the price of goods and services. While this may be a factor, it is not the sole cause. Congress has approved increases in the federal debt limit for decades, and there was very little inflation.
    The pandemic has caused shortages in goods and services, and businesses have used this as a reason to increase prices, regardless of need. It is an opportunity to raise prices, but it is not a foregone conclusion—it is a business decision.
 John Strauss
Campton Hills, Ill.

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Wisconsin’s largest paid circulation community weekly newspaper. Serving Port Washington, Saukville, Grafton, Fredonia, Belgium, as well as Ozaukee County government. Locally owned and printed in Port Washington, Wisconsin.

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