Professor Mark J. Perry's Blog for Economics and Finance
It's pretty easy to find articles in the media and in various food blogs complaining (or worse, whining) about how expensive food is these days. But the chart above tells quite a different story.
Dr. Mark J. Perry is a professor of economics and finance in the School of Management at the Flint campus of the University of Michigan. Perry holds two graduate degrees in economics (M.A. and Ph.D.) from George Mason University near Washington, D.C. In addition, he holds an MBA degree in finance from the Curtis L. Carlson School of Management at the University of Minnesota. In addition to a faculty appointment at the University of Michigan-Flint, Perry is also a visiting scholar at The American Enterprise Institute in Washington, D.C.
3 Comments:
Food prices would be 10% lower were it not for the ethanol program.
The US ethanol program will triple production in coming years. Could that be enough to bend the food inflation curve upward?
Energy exploration restrictions also prevent further food deflation.
Increasingly, restricting economic progress seems to be the goal of government and environmentalist organizations.
Corn is selling today for $3.18/bu on the front contract. That's up, maybe, $0.01 per pound over three years, ago.
Your $8.00 T-Bone has about 2.6 lbs of corn, contained therein. SO, your T-Bone is up about 1/3 of 1% due to the cost of corn. Shocking!
And, due to GM Seeds, we're planting fewer acres, using less fertilizer, and causing less erosion every year.
On the other hand, the Univ of Iowa figures we're saving about $0.35/gal on our transportation fuel due to the competitive pressures of ethanol in the marketplace. Did I mention that "petroleum" is one of the major input costs in the production/distribution of food?
Well how long will food be inexpensive when the MSM pushes this sort of idiocy?
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