Freedom and inflation for all: fireworks displays are restricted

While the cost of fireworks is down from last year, the price of almost everything else is up significantly. That means people are still buying fireworks to set off themselves, but the size and scope of municipal fireworks shows are being cut in many cities across the country — and in some areas, they’ve been canceled entirely.

Overall, fireworks are cheaper now than they were a year ago, but they’re still significantly more expensive if you go back a few years to before the pandemic. And the drop in demand since then hasn’t entirely stopped the rising costs, especially since fireworks made in China still have to be shipped across the ocean to American buyers.

For cities accustomed to lavish displays, the costs are high. Practical extras are needed, such as portable toilets, shuttle buses and trained pyrotechnicians. Some cities hire DJs to play music. But one of the biggest costs is insurance, which is required for every official fireworks display, and the cost of which has skyrocketed.

Insurers know that if something goes wrong and a claim is filed, the cost of dealing with it will be much higher than in years past: repairing or replacing damage, handling medical emergencies, and planning for other external factors are all taking up significantly more fiat money than they were a few years ago, and there is no expectation that anything will change for the better. As Peter Schiff said earlier this year:

“The Fed printed an absurd amount of money during the pandemic, and government deficits have skyrocketed. What has fundamentally changed since then?”

This is even more true when you need specialized insurance that needs to cover a wide range of things, as is the case with municipal fireworks shows. Cities need not only liability and property insurance to protect technicians and the public, but also insurance to cover the transportation of fireworks, coverage in the event of cancellations or bad weather, and more.

That’s why home, health and auto insurance premiums have also gone up, as have third-party and other types of insurance. Insurers know that it will cost a lot more to fix what breaks, whether it’s a house, a car or a city fireworks display gone wrong that got out of hand and blew up a public park.

Home Insurance Premiums, 2019-2024

Source

The problem is only going to get worse, so we can expect an even bigger drop next year, especially if Trump wins the election and imposes tariffs on imports from China, which would further increase the price of fireworks themselves.

Municipalities will have to cope with these higher costs and adjust their programs — and residents’ expectations — accordingly. On the bright side, your dogs and cats can get a break from all the noise. But on the other hand, goods and services for Americans will be less affordable than ever before as Americans try to spend their devalued dollars.

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