Effects of Inflation: Maker’s Mark Whisky

HERE

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Ha! HA!!!

LOL.....


What has really happened is the cost to make the whisky is going up and because they didn't want to do what other products are doing (cut the size of the portion down - the volume) they're cutting the alcohol content



See, IF there really were such a massive high demand, then the price would simply go up to reflect that demand. They certainly wouldn't cut the amount of alcohol in their whisky! I'm sure the Government Schooled public isn't fooled one bit... Pfffffff.....

The fact is the product isn't going to sell at the price point needed to recoup all of Bernanke's 'Stimulus'. It's a wonderfully clear example of how a mismanaged centrally planned economy begins to collapse in on itself. Everything, EVERYTHING from relationships, family, community to the food you eat and the whiskey you drink. It all starts to degrade. This is just another clear sign of the stress and pressure the economy is under holding up all the unproductive people that compose the Goliath sized monstrosity that is our Federal Government.

All that government isn't just going to pay for itself. So, I do hope you like those FREE roads....

 

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They will do whatever makes them more money.

You really didn't know that? You wouldn't last long in a free market.

 

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Michael doesn’t know that; he doesn’t know a lot of things; this is really a great example of what passes for “conservative thinking”. Anything that doesn’t comport with their world view is obviously part of a global cabal.

Conservatives go from zero to warp speed in an instant without a thought. And all the inconsistencies are smoothed over with cabals and conspiracies. Michael would have everyone believe that there is some evil cabal at work with global implications even though he has no evidence and no reason. Why would the executives at Beam, Inc. the owner of Makers Mark commit fraud and violate SEC disclosure laws and risk jail time for some ill-defined reason and for some unnamed secret cabal?

Makers Mark sees this as a temporary supply problem. If they let prices rise, they lose customers and market share and open the brand to competition. Former Makers Mark customers will move to competing brands. And when the supply problems are resolved, Makers Mark will have to fight for and spend money to regain those customers and rebuild their brand and regain their market share.

Michael knows nothing of brand management.

 

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Makers Mark say their product is in such high demand, they have to CUT the alcohol out of their whiskey! Haa! No, when something is in high demand, and it's in limited supply... *gasp* it's price point goes up.

ALL across the spectrum food items are shrinking (as opposed to prices going up). It's a CLEAR sign of inflation. This is just such a wonderful example I posted it.

New York Times: Food Inflation Kept Hidden in Tinier Bags

 

You are playing fast and loose with reality again Michael. Maker’s Mark is having trouble with supply. It has nothing to do with secret cabals. It has nothing to do with inflation. It has nothing to do with secret conspiracies. It has everything to do insufficient capacity to meet the demand and managing its brand and is a temporary problem.

http://www.supplymanagement.com/news/2013/supply-problems-force-makers-mark-to-reduce-alcohol/

 

I didn't say it had anything to do with secret cabals.

I said it's an effect of inflation. They're literally watering down their product, reducing the amount of alcohol in their Whiskey, instead of reducing the portion as many other companies are doing. This is probably because they're selling a fifth/quart size and so they're resorting to watering down.

As for their supply 'problem' as I stated, all that happens is the price goes up until the supply goes up to meet demand.

I already linked the New York Times article, it's a simple fact that inflation in commodities is working its way into the end product as size reduction (or decreased quality - example: watered down whiskey and horse meat burgers).

This shouldn't come as a surprise Joe, just take a look at any of the Progressive Socialistic Communist countries. The State is all powerful, people live in fear, are poor and everything is of low quality. We're simply seeing the effects of central planning in our society.

 

You said Maker’s Mark was trying to hide inflation. You claimed the supply issue was a ruse to hide inflation. And that is not true. You insinuated that Maker’s Mark was part of a conspiracy to hide inflation.

That explanation flies in the face of reality. The company has said quite clearly they are reducing the alcohol content because of supply issues. You have claimed and continue to claim Maker’s Mark is covering up a problem with inflation rather than experiencing a supply problem. Maker’s Mark has zero interest in covering up inflation. They only care about satisfying their customers and their stockholders and maintaining their market share.

We know what you wrote. You didn’t mention their supply problem. You said demand somehow tied to inflation was the reason Maker’s Mark was reducing the alcohol content.

Companies have been reducing packaging sizes for decades. It’s nothing new. And it has zero impact on inflation and how inflation is reported. And inflation remains low in the US.

You mean like Sweden and Norway? Oh yeah, those Swedes and Norwegians live in perpetual fear and poverty and those Volvos are just crap. LOL

 

When Henry Ford starting building the model T it was in huge demand. He wanted to hit a certain price point to meet his business plan, but it was hard keeping everything in stock and cheap enough to hit that price point - since HIS suppliers were raising their prices in response to demand. How would he do it?

His solution? He sent his inspectors to junkyards to look at what parts on discarded model T's were worn out. And many parts (engine, drive train) seemed to be wearing out. But one part, the kingpins, were holding up just fine.

At this point the more clueless businessfolk say "well, he should make his engines more like his kingpins and increase the price." Instead he changed the design of the kingpins to make them out of cheaper stuff. Similar to what Makers Mark is doing.

So unless you think Henry Ford is a government controlled communist/fascist (which for all I know you might) such practices have a long tradition in capitalism.

 

Just got back from Finland. Never go there; it would blow your worldview right out of the water. We spent one night at a restaurant drinking italian wine, eating reindeer and listening to the Finns complain about local politicians.

They also have the best educational system in the world. How do they do it? Lots of ways, including requiring all teachers to have master's degrees - and paying for those degrees.

 

No, I did not. I said this is a 'hidden' effect of inflation.

You do understand that sentence right? You know, outright inflation would be raising the price of their product. Decreasing the size and/or watering it down is 'hidden' .... not as in 'magical cabal' but as in it's not a direct raising of the actual price. The FACT is commodities are rising as TBTF bailed out banks have shifted into commodity markets as safer investments. This is pushing up the price of everything.


I really fail to see what's so hard to get here Joe?

 

How much do you really know about Finland? Do you think it's large oil reserves maybe have somethign to do with their economic success? How about their relatively homogeneous society? Does society have anythign to say on economy? Yes, Finland has a pretty good educational system particularly for elementary school. Probably one of the best models of a public school if you get the right teacher as a child. Did you know that only four other European countries have a less regulated product market? That being the UK, Ireland, Denmark and Sweden. Oh, gee, those are also Nordic countries. Did you know only one has less regulated financial market? That's Denmark.

Finland is a wonderful country, but "Free" University has given it a chronic problem with PhDs that can't get a job in their field of study. Luckily they're capitalistic enough and for now have enough oil to keep some of these graduates employed. But it is a problem. Did you know Finland has strict laws regarding property rights? And contractual agreements? Do you know just how pissed off many Finish are about even the thought of bailing out the Greeks?!?

Think about that for a moment? If you're Greek, gee, those Nordic people must seem like huge arseholes. I mean, here you were doing YOUR part buying all this stuff.. you know, you're an integral part of their economy... and NOW they want you to PAY!?! Jesus!


Anyhow, I will agree the public school system is probably as good as the world has - for public schooling. I often cite their model myself to people in education in the hopes of making SOME headway. To no avail. Which is sad. They just nod, say Ah Huh... And, that's that. See, "FREE" University means a lot of young adults enter a degree that they'd 'like' but without any aim of getting an actual job doing it. I mean, why bust your arse off doing engineering? That's going to take a lot of work. And Art Appreciation is so much more fun. Hell, you're not paying so who the f*ck cares.

See how this works? Money isn't some abstract thing floating out in space. And there is no "FREE" University. IF Finish students were forced to PAY for their education, many would probably look at doing degrees that will see them in a good job (now, don't get me wrong, lots kids do think like this, the thing is that many who should, don't if it's not their money). You can clearly see this at work at a Buffet. People will always grab much more than they need, and leave a bunch of food they didn't bother eating. It's a classic example of both humans, and why we NEED money.


The problem with our society is we lost control over our own money. THIS is the single biggest problem and it effects everything. I'll ask you what I asked iceaura: IF we can create all the money we need DEBT-FREE and by Fiat, and spend that into the economy on the needed public goods and public services (school, sewers, roads, etc...) then WHY do we have an Income Tax?

 

It makes perfect sense to make the kingpins out of cheaper material if it did NOT cause the car as a whole to wear-out sooner than normal. IOWs, he didn't start making kingpins that broke in a day now did he? He noticed that the kingpins were made much better than the rest of the car and cost him money so he cut back. Why make silver kingpins when steal will do?

You can read the New York Times article. They ALSO make clear many food items are reducing their size AND selling at the same price point AND making the same profit. See, this is an effect of inflation.

But, don't worry, soon you'll get $500 Whisky at 30% and think that's normal, along with 100g tuna mixed with cat for $150 to go with your $100 cup of coffee all while working at a wonderful minimum wage of $20 an hour. Life will be worse off, yet I'm sure government will be even larger and you'll tell everyone how life'd be just so much better if it grows a bit bigger. It's 20% now. Democrats stated goal is to go for 25% GDP. They LOVE government - like you. Hey, maybe in a few years it'll be 30% or 50%. Yippie us. Imagine how wonderful our life would be if we just got rid of that scary mean free-market. Let's just have "The Government" take care of us in a Police State. Won't life be wonderful then without all those greedy Steve Jobs 'stealing' from everyone by offering them iPhones.

heh.....

 

Joe, you did learn in Econ 101 that when the supply is low, the price goes UP. See how simple this is. When blueberries are out of season, people pay MORE. When blueberries are in season, people pay LESS.

I fail to see what's so hard to understand here? Even YOU must see the simple logic in this??? It's literally Econ 101.

 

OK, OK, it's moot point now. So find something else to complain about.

http://www.nbcnews.com/business/makers-mark-stop-watering-down-its-whiskey-1C8410338

 

You are reverting back to setting up straw man arguments again. You don’t recall the brand management lessons you have been receiving over the course of the last 48 hours?

 

None of this crap has anything to do with inflation. Nothing that Maker's Mark has done has anything to do with inflation. It has nothing to do with a "police state". It has nothing to do with secret cabals, some mass conspiracy to cover up non existent runaway inflation or any of the other machinations and fantasies going through your head.

 

Exactly. And why make great whiskey when cheaper whiskey will sell just as well? It's costing them money for no good reason.

No, it's the result of capitalism.

You wouldn't do well in a purely capitalist society. Companies - and customers - wouldn't do what you wanted them to.

 

Yes.

No.

Yep. Finns are pissed off about a lot of things. I heard about several such topics. Another one is that there are too many damn Russians.

Actually it's the best in the world - period.

Good to see you're starting to change your tune on your hatred of progressive socialist countries.

 

Pretty hard to have Capitalism in a country that's in debt Trillions of dollars and going deeper year after year, with tens of trillions in unfunded liabilities. Where is this "Capital" you speak of?

IF the government can create all the money we need for public service, do so debt-free, by Fiat and without interest - and spend that money into the economy on the needed public goods and public services (school, sewers, roads, etc...) then WHY do we have an Income Tax?

I'm sort of curious how much actual consideration you've put into the matter.




Oh, and Joe, the price goes UP when supply goes DOWN. Jesus, this is pretty basic stuff here. The LAST thing you do is water down milk and call it full-cream and expect people to pay the SAME amount. THAT is asinine. AND their excuse is the demand is so great? If it's so great then the price they charge per item will go up until they can economize and create more of their highly sought after product. So, if they are really telling the truth, lets see if the price reflect that. I'm all for agreeing it MAY be possible Joe is working for Beam Inc. and came up with this doozy

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Anyway, you've been proven wrong as they won't be watering down their product now - so much for "Brand blah blah blah ..... "

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When you have a lot of oil, then yes, it's possible to do a lot of good things. That's true. Not to mention Finland ranks quite high on a rank of Capitalism - higher than the USA according to some scores. Anyway, Finland is indeed going broke and they are 'starting' to *gasp* talk about shrinking government. Now, when the Finish start talking like that, hmmmm....you'll listen then?

RE: Education
If you really believed your own logic then you'd suggest we shift to the Beijing Communist Model. Shanghai beat-out Finland. Students in Shanghai are ranked the top in the world. So, are you suggesting we adopt the Chinese-Educational model? Are you going to cut off your nose to spite your face?


The Finish model could be provided in a Private Education market. Just imagine if the Finish model was the norm BUT people COULD offer other educational services. In a free-market where they didn't have to compete against the State for monetary resources, you'd see an even BETTER educational model arise through competition. Also, stop and think about this. Imagine if that ONE Finish teacher who came up with that idea was NOT listened to by his/her boss. Stop and think about that. This great model just wouldn't have ever been introduced to the world. WE LIVE IN THAT WORLD. You just don't know it because you can't miss something that never was.