Neighborhood Ministries

Liberal politicians have been claiming that “shrinkflation” is the result of greedy corporations trying to cheat the consumer.  Shrinkflation is when a manufacturer reduces the amount of product without reducing the cost. Since the correct weight is listed, it is not illegal, but requires the consumer to check the weight when comparing prices. They claim we need to increase taxes for corporations to force them to pay their fair share. While that sounds logical, it ignores the facts.   Higher taxes and increased regulations imposed by liberal politicians have greatly increased the cost of manufacturing. In addition, inflation fueled by reckless spending by liberal politicians has also added to the cost of raw materials and labor. As a result, many corporations are facing massive increases in cost and have to make up the deficit somehow. They can only increase prices so much without driving away consumers. As a result, many have had to reduce the quantity to cut manufacturing costs. By increasing corporate taxes, politiciansare only adding to manufacturing costs and further forcing corporations to find ways to cut costs. However, liberal politicians refuse to accept responsibility for their actions and continue to use it to justify their reckless spending and increased taxes. We will not see any reduction in out of control inflation until they cut spending, reduce taxes, and unnecessary government regulations. Government officials who have no business experience have no business regulating businesses. Voters need to vote out the reckless politicians and vote in people who are experienced in business and can help businesses thrive. While some regulation is needed to prevent fraud and price gouging, the free market is very powerful in regulating businesses. Consumers vote with their dollars and businesses know they need to respond if they are going to stay in business. President Trump showed what a businessman can do in spite of all the hindrances he faced from liberal politicians who wanted to continue their reckless spending.

The liberal politicians are always talking about taxing the rich corporations more. They imply that the rich aren’t paying their fair share of the taxes. While that sounds reasonable, it ignores reality. A corporation takes money in and spends it on raw materials, wages, and returns to stock holders, in addition to taxes. If taxes increase, it must get the money from somewhere. The only source of funds that it has is the income from what it sells, so it must pay the increased taxes by raising the price of what it sells. As a result, the corporation doesn’t really pay the increased taxes, it passes the cost on to consumers. As a result, the increased taxes actually fall on consumers. The rich can afford to tighten their belt a little and  reduce the luxuries they purchase, however, the working class and poor cannot. Those increased costs must come from cutting back on necessities like food and utilities. If those increased costs are too much, they may threaten the person’s ability to obtain food, utilities, and shelter. We are seeing this in California where excessive taxes and government spending have resulted in run-a-way inflation, which has resulted in the largest homeless population of any State and a large number of residents are leaving California to find somewhere else to live where taxes and the cost of necessities is lower. If our federal government continues to follow California’s example, it will spread the burden over the entire country and there won’t be anywhere else in the United States to go.