Food Prices, Shortages & Inflation - The Trash Index

[k15n1]

. . . And BTW, the low price of food is a federal policy, so whether you like big or small government, keep that in mind.

I don't believe that for one second. Show me.

Are you saying that

1. you don't believe that food is relatively cheap in the US, or
2. that you don't believe that there are government subsidies for agricultural production in the US?

RE Item 2: http://en.wikipedia.org/wiki/Agricultural_subsidy#United_States

 

[k15n1]

Also wanted to add the fact that the second highest household bill is usually the grocery bill. If our mortgage payments fluctuated from month to month like our food bill, LOTS of folks would take more notice, which IMO, makes food inflation a HUGE deal.

I don't think this is true for the typical american. Of course, this forum isn't usually frequented by people who are typical by any measure, so this may not match up with your experience. But the discussion seems to be about food prices, so this may add some perspective.

http://www.creditloan.com/infographics/how-the-average-consumer-spends-their-paycheck/

 

[k15n1]

There's a philosphoical point of view that everything is always getting worse (for whatever reaons) and I don't think the facts bear it out

Things feel like they are getting worse now because THEY ARE. They don't always get worse, but at this point, prices are rising, wages are falling, inflation is growing...so yeah. Things suck right now.

The current administration is engaged in a "let's pee on them and tell them it's raining" plan.

I guess I was trying to point out that there are measurable factors that influence food prices, not an evil plot against working people or some other intangible or mysterious force.

Inflation, excess regulation, high taxes, the health care plan, etc... are not what I call mysterious forces, but it sure does look like an evil plot against working people from where I am standing.

If you think everything is so terrible right now in the US, you need some historical and international perspective.

 

[CrimsonRose]

. . . And BTW, the low price of food is a federal policy, so whether you like big or small government, keep that in mind.

Actually, I believe the opposite is true. I have not seen where food is subsidized to make it lower. The government pays farmers NOT to grow some foods, so that the prices WILL NOT be lower. They were originally intended to subsidize small farmers' income during periods of low prices, and to artificially reduce the amount of certain crops on the market in an effort to raise prices.

yeah we have a lot of farmers around here that leave their fields empty and get a Gov't check! but I don't know of any that get paid to grow it... unless they sell it to customers... I don't know any farms where the gov't buys the crop... (Unless there is some fuel program where they buy corn... but I don't know of any of our local farmers taking part in that here) So if the fields sit empty there is a lower supply and higher demand the prices stay higher not lower... so that way the farmers who do grow the crop make enough to live off of...

 

[abifae]

If you think everything is so terrible right now in the US, you need some historical and international perspective.

Actually, that perspective is why we all know things are bad and will get worse.

 

[TanksHill]

Also wanted to add the fact that the second highest household bill is usually the grocery bill. If our mortgage payments fluctuated from month to month like our food bill, LOTS of folks would take more notice, which IMO, makes food inflation a HUGE deal.

I don't think this is true for the typical American. Of course, this forum isn't usually frequented by people who are typical by any measure, so this may not match up with your experience. But the discussion seems to be about food prices, so this may add some perspective.

http://www.creditloan.com/infographics/how-the-average-consumer-spends-their-paycheck/

I have really tried to stay out of this discussion. But I have to say. I'm going to take this as a compliment and move on.

 

[CrimsonRose]

There's a philosphoical point of view that everything is always getting worse (for whatever reaons) and I don't think the facts bear it out

Things feel like they are getting worse now because THEY ARE. They don't always get worse, but at this point, prices are rising, wages are falling, inflation is growing...so yeah. Things suck right now.

The current administration is engaged in a "let's pee on them and tell them it's raining" plan.

I guess I was trying to point out that there are measurable factors that influence food prices, not an evil plot against working people or some other intangible or mysterious force.

Inflation, excess regulation, high taxes, the health care plan, etc... are not what I call mysterious forces, but it sure does look like an evil plot against working people from where I am standing.

If you think everything is so terrible right now in the US, you need some historical and international perspective.

So are you saying even when the government announces a recession (which means in so many words that the economy is having a hard time) that they are wrong?

I'm not comparing myself with third world countries... Yes price of food per income sucks! but the US is NOT a 3rd world country...

I see friends and families who have cut out all the luxuries in life and depend on others in the family to help buy them food from time to time because all they have in their cabinets is a can of beans... They are on a fixed income and have NO way to improve the money situation... The prices HAVE increased... The first year or 2 they sold off some extra things trying to ride out the "fluctuation" as you called it... but the prices HAVE NOT came back down... So it's when I see things like this... I start to worry about my family...

yes I can still afford good food... but it is getting harder and harder to do...

As for our food bill... even though I grow a ton and raise our own meat and eggs... and make all our food from scratch... Our food budget IS the 2nd highest bill we have right after our mortgage... That is not including the animal feed or garden costs... which in the long run does factor into our food...

 

[Wifezilla]

Interesting article, but a lot of the people here are NOT drowning in credit card debt. A good deal of the people here cook all meals from scratch and aren't blowing extra money on eating out.

 

[bambi]

My observation is it is acually getting more expensive to cook from scratch than to purchase pre-made meals and processed food. This is very alarming to me I love to make my own bread and cook from scratch but it is now so much more expensive. Also every time I go to the store I am elimainating more and still paying more than the previous visit to the store.

 

[Wifezilla]

If you think everything is so terrible right now in the US, you need some historical and international perspective.

First of all, I'm 48, not 18. I am also a small business owner and a mom. I think my background is very well rounded. The fact that other countries suck more is not an excuse for the US to continue to engage in behaviors and policies that cause unnecessary hardship.

Were things worse in the past? Yes. But there were times when things were also much better. Could things be much better right now? YES.

A good deal of my customers are now out of work, had to close their businesses, lost houses, etc...

If you are so well off that higher grocery prices do not effect you, congratulations. That isn't the reality for a large part of the population.

I am getting really sick and tired of people claiming everything is so rosy and hunky dory when it isn't. If it is for you, again, congrats. It isn't for people around you. You might want to take off the rose colored glasses for a few minutes and look around.

I know this might be easy to just dismiss this as my opinion or me living in some kind of regional depression anomaly, but these charts tell it all...
http://www.shadowstats.com/

Real unemployment around 23%. Real inflation at 7%.

Another good indicator of the true state of our economy is the number of people using food stamps...
"According to the U.S. Dept. of Agriculture's latest report on its Supplemental Nutrition Assistance Program (aka food stamps), a record 45.8 million Americans received SNAP benefits during the month of May, up 12% from the same month in 2010 and 34% from two years ago.

The largest increase came from Alabama, where 1.76 million residents used the benefits during May after storms devastated good chunks of the state. That's more than double the number of Alabamans who participated in April.

While the Alabama number is likely what pushed the total number across the record-breaking line, that 12% year-over-year rise in SNAP participants isn't coming from just one state.

Twenty-two states and the U.S. Virgin Islands experienced at least 10% growth in the number of residents using food stamps between May 2010 and May 2011. Three of those Alabama, New Jersey and North Carolina experienced more than 20% growth.

Meanwhile, only North Dakota, which already had the second fewest residents using food stamps, demonstrated any year-over-year decrease in the number of SNAP participants, and that was only -.1%, or about 81 people.

"The rise in the Supplemental Nutrition Assistance Program indicates that the economy is still in tough shape and for a lot of people the recession has not ended," Nicholas Colas, chief market strategist for ConvergEx, told ABC News. "It's clear that the historical stigma of being on food stamps is quickly eroding because there are so many people on it. People don't feel bad asking for help.""
http://consumerist.com/2011/08/record-high-458-millions-americans-using-food-stamps.html