A Plea For Corporate Welfare Posed As Concern For Poor

It never occurs to Liberals (or many Republicans) that rather than forcing money into the hands of consumers, the market is supposed to force prices lower for them. So, instead of being happy as prices fall, they are always wringing their hands when businesses that can’t compete begin to suffer.

Thus, Huffington Post (from Quartz) on Family Dollar, which is reporting lower than expected profits.

As poor Americans come under more and more pressure, more and more of Family Dollar’s revenue is tied to low-margin sales of necessities like food. (Sales were strongest during the first fiscal quarter in Family Dollar’s “consumables” category, especially in areas like frozen food.)

The fact that so many Americans are being forced to curtail spending at the cheapest discount retailers should give anybody cheering the US recovery something to think about.

Notice that, whenever they hear news like this, Liberals ignore the effect that Obamacare is having on household budgets. They ignore the policies that raise the price of energy too. If the Federal Government ended the ethanol madness, for example, we would all get better mileage and our fuel costs would go down.

In the name of helping the poor, the Huffington Posts dresses up corporate welfare as “stimulus.”

Economists argue that things like food stamps and unemployment act as crucial bits of stimulus when the economy is weak. Cutting them can act as a headwind to growth. That’s certainly the case for low-end retailers such as Family Dollar.

So when McDonald’s employees get government assistance that proves that McDonald’s should be forced to pay higher wages, but it is OK to throw extra money at Family Dollar?

The bottom line is that prices need to fall. People wanting to sell goods in the U.S. need to learn that their prices are too high. The only way that will happen is if businesses like Family Dollar learn that their prices are too high. Huffington Post is desperately trying to use government money to interrupt that process. They are demanding that the government enable Family Dollar to remain more expensive through wealth transfer.

So basically, if you own stock in Family Dollar, you can hope for a windfall if the government increases food stamps are unemployment. Helping the poor seems to never make them better off, but at least it helps those with stock portfolios.

If the government wants to help the poor it needs to stop everything it is doing that makes food and energy and other important items more expensive. Otherwise, it needs to stay out of the economic process that teaches the world to lower prices in order to get more customers.

Of course, all of this assumes that Family Dollar’s profits are reflective of the general economy. But perhaps the Huffington Post is just pretending. For all I know Family Dollar is merely losing business to Aldi—which is planning on 650 new stores in five years. So not every business thinks that no one has enough money to buy food.