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No Stupid Questions @lemmy.world
DichotoDeezNutz @lemmy.world

What is an average person living in the US supposed to do about corporations raising prices?

They keep raising prices, stating that it's due to inflation, but then they keep having record profits.

Meanwhile, the average American can barely afford rent or food nowadays.

What are we to do? Vote? I have been but that doesn't seem to do much since I'm just voting for a representative that makes the actual decisions.

430 comments

  • Plant a vegetable garden. Build a rain catchment system. Build a solar power system. Read books instead of consuming other media. Buy only local. Start a consumer or retail cooperative. Don't participate in wanton consumerism.

    Voting in the US doesn't yield desirable results because of the gerrymandering and the voting system; however most changes which directly affect people are made at a grassroots level so participate in activities at a grassroots level.

    • Don't participate in wanton consumerism.

      This is the answer. And it comes with other benefits also.

      I do okay financially. I don't have problems affording necessities. But I have found there is also a lot of satisfaction in being more self-sufficient, in relying less on supply companies to deliver my every need. And it saves a ton of money.

      Food is a big one. I used to spend a ton of money on takeout, delivery, junk food. But here's the thing, basic cooking really isn't that hard. It doesn't have to take up a lot of time, especially if you meal prep. And the resulting food is both better in quality and better for you.

      On that same thread, the grocery store is not always your friend. Especially if it's one of the big national chains. You will find much better quality produce at your local farmer's market, and it's often cheaper too. Certainly way more flavorful, the vegetable that was in the dirt yesterday tastes way better than the one that's been in a warehouse for a month. Happier chickens lay tastier eggs. Etc.

      And there's a lot of stuff you can do yourself. A vegetable garden is a great place to start, if you have even a tiny backyard. Think folding table size. Plant yourself some tomatoes and put up a net frame so animals don't eat them, they will be the best tomatoes you've ever had. But planting and growing stuff is one of the most efficient ways to get food- Stick it in the dirt and water it and you get food for free!

      Then think about all the shit we buy. How much of it do we really need? How much of it ends up in the landfill in a year or two? When purchasing things, think about the product entire life cycle and how each step will affect you. IE, Don't just think about the dopamine rush you'll get from unboxing your shiny new toy, or the novelty of using it the first couple times, ask yourself is it going to enhance your life owning it over the long term, and is that amount of enhancement worth its purchase price and the space it consumes?

    • Don't participate

      This, as much as possible and in as many areas as possible. Keep everything local as much as possible and minimize consumption. I've found that satisfaction arises much more readily from minimum consumption than maximum consumption, which might be why the advertising industry spends billions per year to convince us that backward is forward.

      Totally agree with participation at grassroot level though. Run for office because you can count on the ghouls sending a candidate.

      • as much as possible and in as many areas as possible.

        I do want to just take a second to highlight this. The idea of buying local and buying from people who make things instead of corporations can be hard. It's expensive. And obviously the point is that we are all struggling. So looking at all the stuff I buy I thinking I need to spend so much more on all of that is daunting.

        We all live under the same shitty capitalistic hellscape. We can't get out of it. We can only do what we can. Need a new dresser? A locally made one will cost you a lot. Don't stress about not being able to afford it. If you need to, get a cheaper one.

        But for a lot of things, you can get it for just as cheap looking around on Etsy. If they have their own website where you can order it so they don't have to pay Etsy money, even better. My boyfriend is in his last semester of nursing school, so I'm getting him a gift, and it's custom made. It's expensive, but most things I would get him are probably made with cheap labor in another country, and would just help prop up a large corporation.

        Does this mean everything I buy is custome made? That it's made locally? No. I can't afford that. But I stopped using Amazon for just about everything, have started buying from people when I can, and it's honestly kind of nice. I got to help someone make a living doing what they want to do, instead of just working a job. So even though we can't afford it all the time, it's great to do it when you can, and not let the idea of it needing to be everything make us feel defeated and then never doing it.

    • My wife and I tried to plant a vegetable garden last year, it was our second try after learning some things the previous year. We got a lot of veggies out of it and had a lot of fun. We weren't so interested in saving money, we were more worried about bare shelves at the grocery store. We also have a few chickens.

      We are going to make it even better this year.

      My new year's resolution this year is to figure out how to build a generator capable of putting out at least 200w. The trick is, I want something that doesn't require a manufactured fuel to run. Solar or wind are obvious options, but I have also considered a steam engine or wood gas engine.

  • One thing I've noticed is that people I know have 2 problems.

    1. they might not know what things should cost. If the prices rises, I notices it right away. I shop at the same grocer and know the standard price of everything I buy. I notice a price increase when I pull it off the shelf. Most my friends don't notice a price increase until they check out.
    2. My friends that do notice a price increase never substitute or change their meals. They will still buy the same meals. Even if the stuff they need go on sale every other week. I've found that usually most my stuff I can still buy on sale at least 1 or 2 times per month.

    These two problems mean that our generation doesn't really put much pressure on stores to keep prices low.

    Rent: Housing costs in America are entire caused by a supply shortage due to limitations on supply. We can literally build as much housing as we want and set the market rate at anything, but since the 60s America hasn't built much and the little we have built has been expensive single family homes. This is a choice voters have made for 60 years, but voters can also make other choices.

    • I work for a huge bank that's investing a non-trivial amount of money (billions) in single family homes. They don't plan to rent them out. They just want to own them.

      Now why would a huge, rich bank invest in something like that? Because they're pretty sure they're going beat inflation when they resell those properties later. It's a very safe (if spread across the entire US and Canada) place to park money.

      It's not a big deal if one or two banks do this or even a handful of private equity firms. However, when all of them do it at once (like they are now) it can have a major impact on the prices of single family homes. It also creates something called a, "systemic risk" but that's a very large topic that I'm not going to cover here.

      The point is that yes: The big banks and big private equity firms (and 401ks!) all own way too much non-commercial real estate in general right now and their expansion into single family homes is a great big societal problem.

      ...but why now‽ Why haven't they been investing in huge swaths of single family homes since forever? I mean, they've been appreciating faster than inflation since forever with only a few minor hiccups (e.g. 2008). The answer is: It used to be much more expensive to maintain homes that don't have anyone living in them.

      Back in the day most homes were unique. In any given neighborhood some homes might have gas heat while others had electric and some others used oil or coal! There were also more fire and flood hazards with more flammable furnishings/building materials and things like washing machine hoses would often just break after a certain amount of time (the seals were only good for like ten years).

      These days you have endless amounts of cookie cutter homes in enormous neighborhoods all over the damned place. They're also built to vastly superior building standards and come with appliances and AC that are orders of magnitude more efficient than in decades past.

      This means a big bank or private equity firm can buy hundreds of houses in a region and (cheaply) hire a 3rd party to look after them. They just don't need as much maintenance as they used to. They're so much cheaper to maintain en mass.

      So how do we fix this problem? There's all sorts of things you can do but some quick and perhaps unexpected things are:

      • Raise minimum wage and crack down on businesses hiring illegal workers doing house maintenance work (let them do construction 👍).
      • Raise property taxes in general. You could try to raise them for homes without people living in them but then you just end up creating other unintended consequences/problems (which I won't get into to stay brief)
      • Force upgrades on unoccupied homes. Air conditioning system is 10 years old? You have to get a new one with improved efficiency. House has gas stoves? You have to replace those.
      • Force inspections of unoccupied homes and come down hard in regards to code enforcement (every unoccupied home poses a nonzero fire risk to every neighborhood).

      Basically, you have to turn unoccupied homes into expenses again. When that happens the banks and private equity will get the hell out.

      There's lots of private equity that will just convert to being slumlords but the big banks do not want to be renting out anything. It's a huge risk for them and looks real bad on their balance sheets from a banking perspective. Also, if a bank is big enough they're straight up forbidden (by law) from renting out properties (though there's various loopholes which I won't get into).

    • On the housing thing - there's been a major intrusion of private equity firms into the regular house market. A report came out recently claiming as much as 40% of all single family homes sold in 2023 went to private equity firms to turn into rental properties (iirc). On mobile, otherwise would try to actually give you the source.

      I can't speak to the food price increases. My only thought is that most people are creatures of habit and always have been, so I doubt that individual shoppers 'not putting pressure on the stores' would explain a historic rise in costs. That said, if we did find evidence that shoppers are less savvy or willing to change habits, my first guess as to why would be people overall being more overworked and stressed. But until the data comes in, who knows.

  • Organize locally and stop being so dependent on corporations. Try to start a garden if you can, live more sustainably, and reject as many "fees" as you can. Cut cords, go for FOSS software if you can, try to use publicly funded entertainment like parks, and try to cook for yourself, rather than eating out.

    If you're already doing all of that, I'm afraid there isn't much more you can do.

    • this, but zoom out. network with your friends and neighbors to share resources. do your best to trade services in kind rather than money. every time you get what you need without resorting to the market, you've cut out governments and corporations that don't actually do anything for you. Maybe you need clothes and you can't sew, but you can grow and can food. The guy down the street can't work in a garden because his back's fucked up, but he can sew. Maybe you have to buy the fabric from a real store, but then you take the fabric and some jarred tomato sauce to him, and he gives you back something you can wear. He also gives you the jars back when he's done with them, so you can fill them again without having to buy more from the market. Bit of an injury? The other neighbor lady is an RN. She can't save you if you're having a heart attack but she can put in and take out stitches, help relocate a dislocated joint and all sorts of other stuff. She needs her driveway shoveled though, and you can't do it because you're injured but you can make bread, so you give some dope ass cheese bread to the kids that live across the way and they do it. The key here is small groups where people actually know one another with repeated interactions. Capitalism thrives when both sides of the equation have to balance out immediately, because the person you're dealing with is a stranger and is likely to disappear as soon as the deal is done. If you float him when he's short he'll never come back around to make it right. A community economy thrives when everyone in it knows that they're going to see the same people regularly, because that means Pete doesn't have to pay me for this food today. He's Pete. He has lived right down the street for years and he's gonna keep living right down the street for years, and he'll make things right eventually. He'll also float me when I'm the one short, and trust me to make things right eventually. This is how humans interacted economically for a very, very long time. Favors and even giveaways were their own sort of currency.

      This is extra tough nowadays, because participating in the capitalist economy is not optional. We can provide some things for one another, but the alternative power structure isn't mature enough that we can realistically feed, house and clothe one another without resorting to the market. So you avoid the market when you can. Trade with your neighbors, do them favors, encourage them to do you favors. When you do have to participate in capitalism, buy unrefined, raw goods where you can and refine them yourself. Each step of refinement that a product goes through has to be profitable for the refiner, so the more refinement a product has gone through the more cost in excess of value is tacked on. Simply put: under capitalism a loaf of bread has to cost more than the ingredients and time it takes to make it or no one would bother to make and sell bread. But we can't all be wheat farmers. So you buy flour, and you deny them the profit of refinement. You buy fabric from the capitalists and put your own time and effort into making that fabric into clothes. You buy a tomato seedling for a couple bucks and you use the only thing that's 100% yours, the sweat of your brow, to turn that seedling into tomatoes. You get real simple and real friendly with the people around you, and you figure out every way you're capable of to avoid the power structure they've built around you and instead to use the power structure that you've built with a small group of people that actually give a fuck about one another. Limit your interfacing with the dominant power structure to strict necessity. And steal from walmart.

    • I hope urban community gardens were a thing in my country. It would provide fresh and cheap vegetables and I wouldn't mind working at it a few hours per month.

      • Same. Mixed-use urban infrastructure with community gardens, public transit, and more would be wonderful. Building it yourself is the only option for many.

430 comments