Tuesday, July 22, 2014

The nice thing about having a Democrat in the White House is that there is never any bad news...

...such as you probably haven't even noticed the soaring inflation in food prices at all since the media is not covering that story.

To which I say: so what? None of those supposedly devastating critiques of the “inflation is real crowd” came even close to addressing the real problem for millions of American families: namely, that the prices of stuff they buy are growing a lot more quickly than the wages they use to buy that stuff. Yes, it’s nice that we spend a smaller percentage of our budgets on food than other nations do or than our grandparents did after World War II, but that’s cold comfort to a working mom trying to figure out how to buy $20 worth of meat with only $15 left in her pockets.
A lot has happened since Perry told us ten months ago to stop whining. Did events prove him right or wrong? Was his inexplicably bizarre method of averaging four years’ worth of inflation data actually an effective way of predicting future price growth? Let’s take a look:
Food Prices Since Sept. 2013
It turns out food prices have soared since he so confidently told us to shut up about them. The chart above shows the rapid disparity between food price growth and wage growth since Perry issued his “stop whining” directive. No joke: compared to less than a year ago, egg prices are up 13 percent. Beef is up 10 percent. Pork is up more than 9 percent. Fresh fruits are up over 7 percent. Overall, the prices of food at home are up 2.3 percent, while average hourly wages are up only 1.4 percent. In other words, food prices are growing 64 percent faster than wages.
The overall trend since the end of the recession in June of 2009 is no different. Food price growth is outstripping wage growth:
Federalist Food Price Time Series 07072014

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