The Art of Stupidity

Almost daily a Gummint Minister opens the hole below their nose and lets the wind in and uneducated hot air out. 

This morning I was assailed with a headline that a Gummint Muppet is screaming that supermarkets need to be railed in.  This Muppet being a Medical Doctor and Former Minister of Health who repeatedly ignored his own Covid lock down rules, is somehow now an expert on the Economics of Supermarket Duopolies and food prices. 

If you go back to the very start of the Lock downs and the re-election of this shower of shit,  Plantet B Media predicted rampant inflation, inefficient supply chain and therefore in particular rampant food price inflation. 

It is fair to say there are inefficiencies in Duopolistic markets, however many of those same deficiencies are present in ‘perfectly competitive’ markets, it just that a price correction to equilibrium happens faster in the competitive market than in a more closely held market environment.  

What is also ignored in NZ, is that the likes of Farro Fresh (and Nosh) have tried to enter this market to find that it is not just the lack of  building sites, but also the level of expertise (human capital) required to enter this seemingly easy but quite complex market, is simply lacking. 

It is all well and good for a Failed GP, Failed Health Minister to say that supermarkets need to be railed in when on a Macro-Micro economic level his government has done the following:

  • Built a debt mountain the likes of which this country has never known to support a Roosevelt “New deal” like gummint spending (inflationary) framework, that is failing us like it failed America (America need a war – hang on……)   
  • Increased taxes and interest rates to control one market at the expense of all others
  • Rained havoc on the supply chain with Covid restrictions limiting the number, shape and size of vessels available to service NZ.  
  • Engaged in 3rd world/banana republic quantitative easing money printing 
  • Engaged in environmental polies that undermine the core framework of NZ manufacture
  • Became a net importer of energy.

Adding all this up the supermarkets, being the largest retailers in NZ will always be the first to show and reflect the cost of bad government as, yes they retain their margins, but they are forced to put that margin on products they purchase from their suppliers, that are themselves priced to the supermarkets based on the cost of increased inputs.  Why is this idiot not attacking the manufacturers margins?  Or is that the next cab of their rank?  

In essence supermarkets, as they have historically always been, are the pre-eminent economic weathervane of BAD government.

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