1. I've been seeing commercials for products that I hadn't noticed in a long time, like Lipton Tea, Quaker Oats, and Nestle Crunch chocolate bar. I'm assuming these are products that people aren't buying because of price increases. (I've not a seen a Nestle Crunch bar on the store shelves in years; have they brought this one back because of the chocolate shortage?)
2. We are shopping with our budget in mind, too. We are sticking to the necessities. We do consider peanut butter and Ritz crackers to be necessities. I stopped drinking tea two years ago when I developed an ulcer and never returned to drinking it; I drink only water these days.
3. I priced frozen turkeys in the store the other day; a Butterball was $2.99 a pound, while a different brand was $1.99 a pound. The Butterball costs almost as much as a steak used to.
4. A good ribeye steak at the supermarket costs $11.99 a pound.
5. My father asked me how I liked paying Biden's prices; I responded that he doesn't have anything to do with it. He laughed at me and said it was all his fault.
6. However, inflation is worldwide. We're at an inflation rate of about 8.5%; the United Kingdom is at 10.1%. Canada is at 8.1%, Turkey's jumped 79%, and Australia's is at 6.1%. Goods from China don't have as far to travel, I guess.
7. Corporate profits are currently at all-time highs, so much of this "inflation" is being fueled by greed. "A study in April that found corporate profits accounted for more than half of the price growth between 2020 and 2021 in the non-finance corporate sector, which makes up about 75% of the private sector." - ABC News
8. "Despite rising inflation, major U.S. corporations are reporting record profits, as companies pass rising supply-chain costs onto consumers. . . . concentrated market power is contributing to inflation. - PBS News
9. It really doesn't matter the reason; if people stop buying Lipton tea because it now costs $5.49 for 75 tea bags, then there eventually will be a drop in prices as the products sit on the shelf.
10. In the cattle market, a piece of beef has to go through many hands to reach the consumer. We, the little farmer, send our calves to market and we receive about $1.25 a pound, on average. From there it goes to a feed lot, which fattens our grass-fed cattle up with grains. They sell the fatter cattle to the meat processor, who sells it to the grocery store. Everyone has to get a share of the sale, with the consumer paying the end price that is ultimately passed down the line. If the farmer only receives $1.25 a pound for a ribeye steak on the hoof, I am not sure who is getting that other $10 plus that the grocery stores are selling the meat for. There's a profit margin or a greater expense (fuel, perhaps?) there somewhere that wasn't there for the last 10 years (our prices haven't increased much over the past decade), and it's not on our end, not after we pay for fertilizer for the pastures, required vaccinations for the cattle (yes, there are required vaccines), and the machinery it takes to make the hay to keep them well fed.
11. Many people have no idea how food goes from farm to table. I think some of them think the grocery store just spawns it out in the warehouse in back of the building.
12. My point is, the economy is much more complex than people realize, by the time one factors in supply and demand, costs of production, and shareholders' desire for increased profits. It's not something any one person, not even the president, can snap their fingers and change, not in this day and age. Maybe he could have made a difference before 1980, when we had regulations and large mergers were not allowed by the government. But not today.
13. The thing I remember, always, when dealing with prices and economics I cannot control, is that the experts don't know, either. In 1987, when we built our house, the interest rate was 13 percent on the loan we took out. Economists were shouting that was as low as the interest rates for a mortgage would ever go. We refinanced several times as the rates dropped; they reached a low of what, 3 percent? So, the talking heads don't know. They can't predict the future any better than I can.
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Thursday Thirteen is played by lots of people; there is a list here if you want to read other Thursday Thirteens and/or play along. I've been playing for a while, and this is my 780th time to do a list of 13 on a Thursday. Or so sayth the Blogger counter, anyway.
I saw a headline somewhere today that said Capitalism is failing, but didn't stop to read the article. Maybe you have just explained it here!
ReplyDeleteSo true about inflation being a worldwide problem and corporate profits being behind a lot of the price increases. But people can't get that in their head. The bellbottoms where part of our Halloween costumes!
ReplyDeleteI really enjoyed this one. We buy all our meat from a local butcher, who buys from farms and ranches in NM. I'm curious...people pay a premium for grass-fed cattle..have you ever thought about working with a butcher in Roanoke? I have no clue whats involved, but I think of you and your farm every time we go to the butcher, lol.
ReplyDeleteWe don't have a local butcher. The closest one is a three-hour drive away, and he's backed up for a year or better.
Deleteworldwide…not one man…consumer buys less…prices go down…no one seems to comment on cheap gas in mast states.
ReplyDeleteI don't know what a mast state is. I would be happy to be enlightened on this, as a quick search yielded no answer.
DeleteIt’s around $24/lb for a good rib steak on sale in my part of California, the last I looked. Organic peanut butter is over $7/jar. I wait until it’s half off, then buy several. Peanut butter is an essential for us, too. Corporations and investors ought to be ashamed of themselves for being so nastily greedy.
ReplyDeleteThis was a great list that really puts things in perspective!
ReplyDeleteVery interesting to read your description of the beef farm to table process and cost buildup. War is only one major disruptor of the global supply chain. Climate is waiting in the shadows to create more issues and more serious costs. Sadly, people everywhere are going to feel the pinch of major food inflation.
ReplyDeleteI enjoyed reading your post very much. Here in Canada, inflation is out of control. Food prices rose so much there is now a commission looking into why they have risen so much in a relative short time. No doubt someone is making big profits. Here folks are blaming our current government too. And I also don't think it has anything to do with Biden. To think so would be to have a simplistic view of the world market place and discounting greed.
ReplyDelete