Thank the Government for the High Price of Holiday Meals

Holiday festivities will see some of our holiday cheer ruined by higher prices. As a result, food and other services are becoming increasingly expensive as the government floods them with dollars. Our money isn’t going as far as it used to. You might be looking for some relative happiness as an American. However, things can get worse. People around the globe are generally much less wealthy than Americans. Another thirdThey now use more bread for their meals each year than they did one year ago. It’s much more bread for the dough.

The price of Thanksgiving dinner in 2020 is a simple comparison.

CBS Los Angeles reports that the cost of a 16-pound turkey has risen from $19 to $25 compared to 2020. ReportsThis is a. A 30-ounce mix of pumpkin pie is now available for as low as $2.49 to $5.49. This year, milk prices increased to $3.39 from $3.08 in 2020. The cost of a box cubed stuffing has almost doubled from $2.81 to 3.79. Only a small decrease was observed in the price of fresh cranberries at $2.49 as opposed to $2.69 last season.

They back the stories. The inflation rate is at an average annual rate of 6.2%According to Bureau of Labor Statistics, overall food prices have risen by 5.3 per cent. The highest increases are in meat, eggs and poultry. 10%. Everyone, how about some festive baked beans?

Although higher wages may theoretically be able to offset rising prices if the economy moves in lockstep, they aren’t. Some media members (such as Stephanie Ruhle, NBC News senior business correspondent), attribute inflation pressures to raise wages to lure workers. Ruhle says that inflation is caused by higher wages. insisted this week

However, the “real hourly average earnings fell by 1.2 percent seasonally from October 2020 to Oct 2021.” AccordingThe Bureau of Labor Statistics. The price hikes are not caused by this. Is there something else going?

“The US Federal Reserve, Treasury and Treasury printed trillions of dollars new and sent checks to almost every American,” Comment Hoover Institution economist John Cochrane. It shouldn’t have been difficult to predict inflation, but it caught the Fed totally by surprise.”

“I think they’re just not recognizing just how much demand is being created by the tremendous wall of money – 15 percent of GDP – in one year that they released last spring,” We agreeLarry Summers, Director of the National Economic Council (under President Barack Obama), discusses the massive spending that the Biden Administration made.

Summers actually begins as early February as BewareThere is the possibility that macroeconomic stimulation on a scale nearer to World War II levels, than the normal levels of recession will trigger inflationary pressures. This could have serious consequences for financial stability and the value of our dollar.

A further factor in the flood of low-cost money is Supply chain is broken due to a number of government interventionThe pandemic has been accompanied by the normal perils of nature and accidental events. Pandemic lockdowns as well as bureaucratic inflexibility, bureaucratic headaches, uncompliances with rules and tariffs have disrupted production. They also shifted the needs of consumers and made it harder for them to transport.

Philip Pilkington (British economist) stated that “Market economies can be quite good at getting food on supermarket shelves and gasoline in the stations. Not noted last month. This last sentence is crucial: they can’t do it by themselves. Market economies that are heavily influenced by the government tend to have similar pathologies as socialist ones, such as inflation and shortages.

With U.S. Energy Prices up by 30%, transportation woes could actually get worse. Trucks require fuelTransport goods from market. Reports of diesel shortages in the U.S. AbroadThis means that stocking supermarket shelves is more expensive.

It’s not good news for Americans or their food budgets. But it is worse for those who live closer to the edges. The UN Food and Agriculture Organization’s global food price index shows that there are many countries in which it is. Up by 31.3 percentSince October last year. The prices of cereals have increased by 22.4 percent, milk by 15.5%, and meat has increased by 22.11% since October 2020.

Certain price rises were already in place before the pandemic. ObserveAccording to the International Monetary Fund (IMF), an African swine virus outbreak decimated large swathes of China’s hogherd. China accounts for half of all the world’s domestic hogs. We have good reason to worry about disease, weather, or other natural hazards. It is notMarket interactions, which are essential for our survival, will continue to be burdened. IMF points out that “early lockdowns and supply chain disruptions caused a surge in consumer food prices,” and also highlights “soaring shipping, transport, and other costs” as a result. Interventions not considered

Even as troubling and alarming the rising prices of food in the United States is, In particular, for those with low income families It is soaringPrices in places less prosperous can be catastrophic.

“There was a dramatic worsening of world hunger in 2020 … much of it likely related to the fallout of COVID-19,” the World Health Organization (WHO) BewareIt was July. “While the pandemic’s impact has yet to be fully mapped, a multi-agency report estimates that around a tenth of the global population – up to 811 million people – were undernourished last year.”

There were also preexisting issues in some areas, but WHO stated that the pandemic had triggered severe recessions worldwide and jeopardized food access.

When you are planning your holidays menu and budgeting for them, it is important to thank the government for both the high prices and those you don’t need. Rejoice that we still have enough economic security to avoid the worst effects of any incompetent government intervention in the markets. It is happening elsewhere, too.