The Labor Department’s most recent inflation data showed that U.S. food prices rose by 4.2 percent for the 12 months ending in July, but a deeper look at the numbers reveals that the price of milk, eggs and other essentials in the American diet are actually rising by double digits.
Already stung by a two-year rise in gasoline prices, American consumers now face sharply higher prices for foods they can’t do without. This little-known fact may go a long way to explaining why, despite healthy job statistics, Americans remain glum about the economy.
Not in the graph are prices for produce, which I find just outrageous these days. Hard to find anything for less than $1.99 a pound besides banannas. It is too expensive for people in the lower income brackets to eat healthily I’m afraid….
Not surprisingly, the price rise has its origin in policymaking in substantial part. There are many alternative fuels advocates and immigration restrictionists who post comments on T19. It would be interesting to get their thoughts on the above excerpt.
Ok. The first part is true.
The part about crackdowns on illegal alien workers is not — at least not yet. The few ‘token’ crackdowns have been on non-ag industries. ONe commmentator said the other day that it would be easy to merge enforcement of immigration laws and welfare reform to keep workers in the fields.
The third part is also true. Diesel fuel is as expensive as regular unleaded gas. However, many farmers have converted their tractors, etc. to run with recycled vegetable oils from fast food joints, but, yes, rises in fuel costs have to be passed on to the consumer. (the same with taxing businesses — they will just pass on the increased cost to the consumer and we will have to pay more at the pump, in the store, etc.).
The elephant in the living room is the fact that we are printing money 24/7.
Rea.,
since the US is no longer on either the gold or silver standard, the money printed has only the word and good faith of the U.S. government for value. 🙁
Prices are being driven up by diversion of resources to produce ethanol, the latest government energy fad. Problem is, ethanol uses more energy than it saves. They don’t tell you that. Plus, your fuel supply and the cost of the same are now at risk from natural disasters like storm and drought.
#5. actually the control of the U.S. currency (money) is in the hands of the Federal Reserve which is a private bank and over which the U.S. government has no control.
Yes, since I’m on a very tight budget I’ve definitely noticed the increase in food prices and it’s changed the way I shop. I’ve also put in a small vegetable garden using seeds from the dollar store at 10 packets for $1! A 30-cent investment has yielded lots of lovely produce! Thus encouraged, I’ll have my son cultivate an even bigger garden for me next year!
If the rise in milk prices means the farmers are being paid a more realistic sum for their product, I’m all for it! I’m also willing to pay more if it means reducing our reliance on illegal workers. BUT, when I go to the store, I notice that a lot of our products are actually imports and not produced by American farmers and companies. So I think they have some explaining to do!
In yesterday’s paper:
“Red or white seedless grapes — $1.29lb, product of Chile”
🙁
tgs,
That’s not very accurate. If the Fed were a truly private bank, it would be refusing to cash checks drawn on the Treasury’s account with it and its notes would not require a law to make them tender for debts.