Economists Andrew Pudzer and Joel Griffith weigh in on the surge in organized retail theft, saying soft-on crime policies force businesses to raise prices or close.
"We can't sacrifice law and order and having a safe and civil society to try and meet some nirvana-like social goals that really produce chaos and increase costs for businesses," he said.
Puzder said this puts companies, already raising prices to meet inflation, in a difficult position. U.S. inflation eased slightly last month, with October's consumer price index showing a 7.7% increase over last year and 0.4% increase over the prior month, according to the Bureau of Labor Statistics.
"Businesses can only increase costs so much before people can't go there anymore," said Puzder, whose former corporation owns restaurants like Carl's Jr. and Hardee's."If you're increasing to meet high inflation, can you also increase to cover the cost of these thefts?" Stores in cities with soft-on-crime policies are left with two options: further hike up prices to cover the cost of theft or close locations struggling to turn a profit, said Joel Griffith, a Heritage research fellow and former member of The Wall Street Journal's editorial board.
Target CFO Michael Fiddelke said on an earnings call that the company expects to lose over $600 million in gross profit by the end of the year due to "shrinkage" caused by shoplifters.He said the hit to businesses' bottom lines also has"a very real impact on you as a consumer."
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