Food prices at last summer's level.

[dahermit]

Have you noticed that the price of food items that went up sharply (attributed to last Summer's $4.00+ gasoline price), have not returned to their previous level despite months of lower gasoline prices? Gosh, I wonder why that is. I though that that free market capitalism was supposed to regulate itself to keep prices down.

 

[Pidgey]

Free market capitalism?

http://globaleconomicanalysis.blogspot.com/2009/09/us-fires-opening-salvo-in-trade-wars.html

You're a'fixin' to find out the hard way just how free it ain't...

...with Smoot-Hawley II !

Just kidding...

What I've been seeing is that many dairy and other farmers are having a pretty rough time of it. Which products are you actually referring to? And have you kept up on the effect of the PDO (Pacific Decadal Oscillation) on California's climate? Essentially, you get 30 years of wetter and 30 years of drier. We've recently begun the dry phase. This is going to be a real problem for agriculture in California.

 

[top gun]

Have you noticed that the price of food items that went up sharply (attributed to last Summer's $4.00+ gasoline price), have not returned to their previous level despite months of lower gasoline prices? Gosh, I wonder why that is. I though that that free market capitalism was supposed to regulate itself to keep prices down.

That's true... when companies jack up prices they are very slow to bring them back down aren't they?

Even my company jacked up its standard per hour rate from $45.50 per hour to $47.50 do to "the gas"... but still @ $47.50.

 

[Pidgey]

Did anyone get cost-of-living adjustments to their wages/salaries? Did any hidden costs go up?

 

[dahermit]

Did anyone get cost-of-living adjustments to their wages/salaries? Did any hidden costs go up?

Yes, the CEO's pay went from 426 times that average worker's pay to 427 times the average worker's pay.

 

[Pidgey]

You know... that's an easy jab to make, unfounded or not. Would you like, just for the sake of fair play, to get into the financials for the company for real?

 

[dahermit]

You know... that's an easy jab to make, unfounded or not. Would you like, just for the sake of fair play, to get into the financials for the company for real?

Price of Pork is the same ins stores is about the as last year despite the fact that the farmers in Michigan are beginning to reduce thier swine herd due to low pork prices (what they get).
Milk prices are about the same in the store as last year, where as milk producters are also reducing their herds in Michigan due to low milk prices (what they get).

Seems to be if producers are not getting paid enough to stay in business, fuel prices to transport it are signiicantly lower ($4.00+ compared to $2.45 per gallon), and the consumers are not getting a lower price, the "middle man" is reaping the reward.

http://www.aflcio.org/corporatewatch/paywatch/

A chief executive officer of a Standard & Poor's 500 company was paid, on average, $10.4 million in total compensation in 2008, according to preliminary data from The Corporate Library.

Excessive executive compensation has taken center stage since the government bailout of banks that began in September 2008. Americans have expressed outrage as CEOs and other executives responsible for the financial crisis have pocketed millions of dollars from bonuses and golden parachutes. CEO perks alone grew in 2008 to an average of $336,248—or nine times the median salary of a full-time worker. Meanwhile, the economy tanked for working people while many companies were bailed out with more than $700 billion in taxpayer money, as well as low-interest loans and guarantees.

 

[Pidgey]

Part of your answer lies in this medium-sized article:

http://www.ellinghuysen.com/news/articles/89957.shtml

It seems that pork exports were growing until swine flu occurred and now some folks in other countries have curtailed purchasing our pork because they think they can get swine flu from eating pork. Therefore, the recent recession in the pork industry is because of a temporary "over capacity". I'd guess (perhaps wrongly) that prices are still up because pork producers are still having to pay off loans incurred for increasing capacity in the first place to meet the prior demand level. THAT is how a producer can be "not getting paid enough to stay in business."

Yes, there are some hefty fortunes being made by the folks at the top of the food chain. And, yes, some of them seem to be getting even worse lately, as in within the last few months. I don't think any administration is going to actually put a stop to that.

 

[dahermit]

It seems that pork exports were growing until swine flu occurred and now some folks in other countries have curtailed purchasing our pork because they think they can get swine flu from eating pork. Therefore, the recent recession in the pork industry is because of a temporary "over capacity". I'd guess (perhaps wrongly) that prices are still up because pork producers are still having to pay off loans incurred for increasing capacity in the first place to meet the prior demand level. THAT is how a producer can be "not getting paid enough to stay in business."

You just do not get it. The point is: The pork producers are being paid less for pork, and the savings are not being passed on to the consumers. Greed on behalf of the processors and/or grocers.

Yes, there are some hefty fortunes being made by the folks at the top of the food chain. And, yes, some of them seem to be getting even worse lately, as in within the last few months. I don't think any administration is going to actually put a stop to that.

Who said anything about any "administration"? The point is that the "free enterprise" system is not working as claimed by keeping prices down and reflecting cuts in cost of products. This is apparent in all the food products I buy. A little less dense please.

 

[Pidgey]

Are they being paid less for pork or are they "not getting paid enough to stay in business"?

Oh... you don't like "free enterprise", huh? You don't like the market setting prices through supply and demand? You don't like the idea of being screwed by "middle men"?

You're certainly old enough to have moved to Russia before they went out of business... or Cuba? Surely there's a "Workers' Paradise" out there SOMEWHERE just waiting to welcome you in with open arms to bask in their wealthier and more fair lifestyle?

 

[Pidgey]

Have you noticed that the price of food items that went up sharply (attributed to last Summer's $4.00+ gasoline price), have not returned to their previous level despite months of lower gasoline prices? Gosh, I wonder why that is. I though that that free market capitalism was supposed to regulate itself to keep prices down.

You know... on that note, let's take a harder look at this evil free market capitalism: Forgetting all the actual numbers, how much stuff are you able to acquire and maintain relative to the other countries on the planet with different systems? How much more affordable and accessible is energy? Supplies?

 

[dahermit]

Are they being paid less for pork or are they "not getting paid enough to stay in business"?

Pay attention; they are being paid less per 100 weight than during the high price of gas.

Oh... you don't like "free enterprise", huh? You don't like the market setting prices through supply and demand? You don't like the idea of being screwed by "middle men"?

The point is: the market is not "setting the price through supply and demand". It is keeping the price high despite low cost to them and the same demand(or lower demand due to the recession) from the consumer. In other words, it is not doing what Republican/Conservatives claim it always does.

You're certainly old enough to have moved to Russia before they went out of business... or Cuba? Surely there's a "Workers' Paradise" out there SOMEWHERE just waiting to welcome you in with open arms to bask in their wealthier and more fair lifestyle?

There is that denseness again. Greed at the expense of the consumer = The American way, huh?

 

[Pidgey]

Okay, here we go:

So, there's your drop in pork bellies futures prices in the top portion with a commensurate rise here in the last little bit. Looking at the volume, it dropped right back there when the crash came in September and October of last year. Less volume means less demand. Less demand, lower price until such time as production drops to equilibrate. There seem to be many levels of the supply-chain-to-market, some of which tend to smooth prices over a larger period of time. There are other difficult-to-quantify effects like how much of the actual total volume is going into SPAM versus more higher priced products or how much of the volume is actually selling at sale prices instead of the normal retail prices.

This is VERY interesting in the context of this banter:

http://www.nytimes.com/1999/01/07/b...-why-haven-t-store-prices.html?pagewanted=all

It's surprising to find an article that's that old, but it details pretty much the exact same circumstance in the market ten years ago.

 

[dahermit]

You know... on that note, let's take a harder look at this evil free market capitalism: Forgetting all the actual numbers, how much stuff are you able to acquire and maintain relative to the other countries on the planet with different systems? How much more affordable and accessible is energy? Supplies?

Whoa! Not the old, "There may be problems with our capitalistic system, but it has resulted in the highest standard of living in the world...", argument. You have not been paying attention. We do not have the highest standard of living (..."stuff are you able to acquire and maintain...), in the world and have not for many years. Higher standards of living than U.S., Netherlands, Sweden, Isreal, Norway, Switzerland.
http://en.wikipedia.org/wiki/Standard_of_living_in_the_United_States

 

[dahermit]

Okay, here we go:


So, there's your drop in pork bellies futures prices in the top portion with a commensurate rise here in the last little bit. Looking at the volume, it dropped right back there when the crash came in September and October of last year. Less volume means less demand. Less demand, lower price until such time as production drops to equilibrate. There seem to be many levels of the supply-chain-to-market, some of which tend to smooth prices over a larger period of time. There are other difficult-to-quantify effects like how much of the actual total volume is going into SPAM versus more higher priced products or how much of the volume is actually selling at sale prices instead of the normal retail prices.

This is VERY interesting in the context of this banter:

It's surprising to find an article that's that old, but it details pretty much the exact same circumstance in the market ten years ago.

Now that you have covered Pork, now comment on: 2-Liter soda, chocolate drink mix, toilet paper, cheese, beef, coffee, peanut butter, bread, etc., etc., etc.