Latest / Radio Baloney - The Richie Baloney Show! / Why Trudeau Is Wrong About Grocery Stores

Transcript

Why Trudeau Is Wrong About Grocery Stores · Radio Baloney - The Richie Baloney Show!

• 0:00
  So Justin Trudeau is getting desperate. Now it turns out that part time drama
• 0:06
  teachers don't make good world leaders, and most of Canada has finally figured this
• 0:11
  out and not having enough money to buy groceries has helped them along with this
• 0:16
  process. So Justin Trudeau needs an answer for this, and he thinks he's
• 0:19
  come up with one. Now, keep in mind, this is the same
• 0:22
  guy who said this and the budget will balance itself, and this I don't
• 0:27
  know when I think about the biggest, most important economic policy this government,
• 0:32
  if re elected, would move forward. You'll forgive me if I don't think
• 0:35
  about monetary policy. So, as you can imagine, he's come up with
• 0:40
  something suitably idiotic. It's not okay that our biggest grocery stores are making record
• 0:47
  profits while Canadians are struggling to put food on the table. So, Minister
• 0:52
  Champaign, we'll be calling on the heads of large grocers to come to Ottawa
• 0:57
  with a plan to address the rising cost of food. We expect to hear
• 1:02
  from them by Thanksgiving on what their plan is to stabilize prices and clapping like
• 1:15
  train seals behind them. There there has to be a few of them at
• 1:18
  least that know that this is just a complete boondoggle. This is just cynical
• 1:23
  politics. If their plan doesn't provide real relief for the middle class and people
• 1:30
  working hard to join it, then we will take further action. And we
• 1:34
  are not ruling anything out, including tax measures. Yeah, because taxes always
• 1:41
  make things cheaper, right. This is just so typically juvenile and pandering from
• 1:48
  the chief pandorer, from the chief virtue signaler in Canada. And it's a
• 1:52
  plan that obviously cannot work. And he's conflating two things here, the instability
• 1:59
  of food prices and the profits of the grocery store chains. Now he may
• 2:04
  not have heard of the supply chain. I wouldn't be surprised. But it's
• 2:08
  quite complex and there's a lot of steps to it. And if you want
• 2:12
  to talk about the stability of food prices, you have to look at this
• 2:15
  and you might notice there's a commonality here between the processes you know, from
• 2:21
  the fields growing the food, to the storage to the food processing, to
• 2:25
  the food manufacturer, to the distributor to the retailer. And what does all
• 2:30
  of that have in common, Well, it needs energy. It needs fuel
• 2:35
  to transport it from step to step within the supply chain itself, but not
• 2:39
  only that, it takes energy to grow the food, to process the food,
• 2:44
  to box the food, to package the food. And you know what
• 2:47
  makes all that more expensive putting a carbon tax on it. Who does it?
• 2:53
  This guy does it. And of course you also have to consider problems
• 2:57
  crises within the supply chain itself, of which we've had many over the last
• 3:01
  few years and it continues. And as for these record profits, well here
• 3:06
  from the CBC, the grocery industry is a relatively low margin business. Typically,
• 3:13
  grocery profits equate two, three or four percent of revenues, and it
• 3:19
  is not more than that for Canadian grocery stores. So gus see a problem
• 3:23
  here with Trudeau's plan. So say it's three percent for a chain, and
• 3:29
  historically it's actually lower than that, But say it's three percent, or let's
• 3:32
  even go to four percent. Let's say four percent. Let's cut that in
• 3:36
  half. So let's two dollars per hundred or four dollars per two hundred dollars
• 3:42
  worth of groceries you buy. That ain't making a big difference. That's not
• 3:46
  turning things around. And newsflash, year, corporations need to make money and
• 3:52
  It's not just to buy yachts. They need to have money in reserve.
• 3:54
  They can't be operating month to month because what a disaster hits when there's some
• 3:59
  sort of crisis. Well, guess what, you don't have a grocery store
• 4:02
  anymore if they don't have money in reserve and if they haven't planned for that
• 4:06
  risk. And talking about these record profits, is it record profits in the
• 4:12
  same way that it's record prices. In other words, inflation also affects the
• 4:16
  grocery stores. They need to make more to stay at the same place.
• 4:20
  If you've just got a cost of living increase, you're not actually increasing your
• 4:25
  buying power. And that's the point of it. So while the number has
• 4:29
  gone up, okay, it has less buying power. That's what happens with
• 4:34
  inflation. Again spoiler alert. The retailers don't actually make the food themselves,
• 4:41
  They just sell it. They don't control how much it costs to make the
• 4:45
  food, to process the food, to package the food, and to ship
• 4:49
  the food around. The retailers themselves cannot stabilize the price of food. So
• 4:56
  what does all this say about justin Trudeau's strategy here, Well, it says
• 5:00
  empty headed and cynical as everything else he does. I mean, there's one
• 5:05
  thing he could do. He could he could cut the carbon tax. That
• 5:09
  would help. That had cut prices at every step of the supply chain,
• 5:14
  but that would be quite embarrassing for him. So hey, actually, let's
• 5:16
  just add more taxes instead. That'll bring down prices. And I guess if
• 5:20
  you don't agree with him on that, you're a bigot or something what he
• 5:25
  usually says. Anyway, that's all I got to say about that. Please
• 5:28
  subscribe, like and share, share. It really helps me out. I
• 5:30
  thank you for that. I will see you next time.