Tag: prices

Why oil prices are up and what it ~ means ~ for you

Posted on by Lone Candle

“OPEC+, meaning the Organization of Petroleum Exporting Countries (OPEC), and its allies, the plus sign, announced it would cut production by over 1 million barrels of crude oil a day. For some context, there are about 100 million barrels of oil produced worldwide each

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Does taxing the wealthy lower inflation?: Video Sources

Posted on by Lone Candle

Fiscal Policy – The Economic Lowdown Podcast Series Federal Reserve Bank of St. Louis. https://www.stlouisfed.org/education/economic-lowdown-podcast-series/episode-21-fiscal-policy How Can Fiscal Policy Help Reduce Inflation? Peter G. Peterson Foundation. 2023 3 7. https://www.pgpf.org/blog/2023/03/how-can-fiscal-policy-help-reduce-inflation US history lesson: Taxes on rich people helped to beat inflation (and

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Robert Reich Is Wrong: ‘Corporate Greed’ Isn’t To Blame for Egg Prices

Posted on by Lone Candle

“A widespread avian flu outbreak devastated the poultry industry in 2022, causing the deaths of more than 43 million hens. December egg inventories were down nearly 30 percent from the year before, just in time for the holiday baking season. Under the basic rules of economics, a persistent drop in supply leading into a time of increased demand is bound to have this result.”

COVID Stimulus Spending Played ‘Sizable Role’ in Inflation

Posted on by Lone Candle

“”We find that excess inflation is significantly correlated to each country’s own domestic stimulus and to various exposures of foreign stimulus,” concluded a trio of economists at the St. Louis Federal Reserve in a report published last month. In the U.S., they found that “fiscal stimulus during the pandemic contributed to an increase in inflation of about 2.6 percentage points.”

That’s a significant increase, even if it doesn’t account for the full run-up of inflation that took place during the past 18 months. Price increases accelerated in late 2021 and throughout 2022, ultimately peaking at an annualized rate of 9.1 percent in June.

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“Other recent reviews of COVID-era stimulus bills have come to a similar conclusion. In a paper published in September, economists at Johns Hopkins University and the Chicago Federal Reserve said “fiscal inflation” accounted for “approximately half” of the recent price increases.
That’s troubling, they added, because “fiscal inflation tends to be highly
persistent…When inflation has a fiscal nature, monetary policy alone may not provide an effective response.”

So far, the chief response to inflation has been a monetary one.””

Why egg prices keep going up while inflation is going down

Posted on by Lone Candle

“The squeeze on eggs is so bad that some grocery stores are reporting shortages, and some are even limiting the number of cartons customers can purchase.
It’s a significant change for what’s long been a reliably cheap staple, and there’s one major culprit: the bird flu.”

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“The last year has brought the worst bird flu outbreak in US history, and there are no signs it’s going to relent soon. Some 57.8 million birds in the US — mostly egg-laying hens — have died as a result of bird flu outbreaks surpassing the previous record of 50.5 million in 2015, and it’s not letting up. Just in the 10 days prior to Christmas, 1.5 million egg-laying hens died.

The virus is expected to continue to circulate among wild birds and the ones we raise for food for the duration of winter, meaning egg prices — along with prices for turkey — could remain high for the foreseeable future.”

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“most victims don’t die from the virus itself. Rather, they’re culled, or proactively killed, in a brutal effort to prevent the virus from doing even more damage.”

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“a major reason why bird flu is so destructive in the US is that factory farms — with so many chickens and turkeys in such close quarters — are the perfect playing field for the virus, which is why farmers are so quick to cull infected flocks. But that very fact raises a simple, but surprisingly controversial question: If avian flu is so deadly and so economically destructive, why on earth aren’t we vaccinating birds against the virus?”

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“For countries in which poultry exports make up a big share of the industry’s revenue — such as the US and many European countries — vaccines have largely been a nonstarter, even though they have the potential to severely limit the death toll of mass culling. Why? Blame the “DIVA” problem.

DIVA is short for “differentiating infected from vaccinated animals” — the challenge of identifying whether a bird is actually infected with avian influenza, or just has avian influenza antibodies after vaccination. Countries fear that importing eggs or slaughtered meat from vaccinated birds in countries where the virus is circulating could inadvertently spread it within their own borders by introducing the virus to wild or domesticated animals through discarded raw meat. That means that big poultry exporters like the US — which sends 18 percent of its poultry abroad — don’t vaccinate, for fear they’ll miss out on a huge part of their revenue: international trade.”

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“without international coordination and predictable vaccine use, it doesn’t make economic sense for vaccine makers to invest in developing vaccines that protect against the bird flu. “We’re not going to make [massive investments] unless we’ve got major markets on board,” said du Marchie Sarvaas. “And the only way you’re going to get major markets on board is if you get some sort of political deal. And that comes to the trade point and the export point.””

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“It’s also a geopolitical coordination challenge, a classic game theory problem where no major poultry-producing country wants to be the first to vaccinate. As a result, everyone sticks with the kill ’em all approach.”