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If anything, globalization increased the cost of meat in America
American Thinker ^ | April 19, 2016 | Sierra Rayne

Posted on 04/19/2016 5:19:56 AM PDT by expat_panama

Returning to this quote from Kevin Williamson's well-known article from National Review:

The manufacturing numbers -- and the entire gloriously complex tale of globalization -- go in fits and starts: a little improvement here, a little improvement there, and a radically better world in raw material terms (and let's not sniff at those) every couple of decades. Go back and read the novels of the 1980s or watch The Brady Bunch...

...the cost of butter was not a major financial concern for well-to-do families in the 1980s, or now. But another of Williamson's points needs to be addressed: the effect of globalization on meat prices.

Globalization started to kick in during the mid-1990s, and by the late 1990s it was well underway...

...All types and grades of beef have seen prices explode since the mid- to late-1990s. The following chart shows the price of ground chuck since 1980, and it is representative of what has happened to beef in general:

Between 1980 and 1999, the price of ground chuck was approximately constant in nominal terms, while the general inflation rate was 100% (i.e., average prices doubled). Thus, the real cost of ground chuck in the pre-globalization era declined by 50% during the 80s and 90s. Since the end of the 1990s, the nominal price of ground chuck more than doubled, while the average inflation rate was just 42%.

Same thing happened with other food groups: flour, eggs, cheese, most fruits and vegetables, various cuts of chicken and pork, and so on.

...

...The two most fundamental needs are food and shelter, and globalization has certainly not reduced the real costs of these....

...Dismiss the silent majority and you lose elections...


(Excerpt) Read more at americanthinker.com ...


TOPICS: Business/Economy; Foreign Affairs; News/Current Events
KEYWORDS: beef; corn; economy; ethanol; globalism; globalization; investing; meat
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This is not an econ piece, it's a political rant.  When it comes to serious money handling we can see how food prices compare to prices in general by adjusting the food price indexes for inflation--

--they're about where they were a half century ago.  That means that as a share of real percapita income food costs are less than half what they were in the '70's.

Sure, everyone hates working in the open market and prefers to wallow self-pity, but later when we get hungry and we find the free lunch place closed, we can get a job --and go fill our bellies in half the time it took our parents.

We'll still have plenty of time to blame everything on globalization --what's not to like?

1 posted on 04/19/2016 5:19:57 AM PDT by expat_panama
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To: expat_panama

The part that matters on that graph is from 2010 onwards. The price of living has risen while real wages have declined. That is the pain point for millions in this country.


2 posted on 04/19/2016 5:25:09 AM PDT by dirtboy
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To: expat_panama

It was good for ranchers till the ethanol mandates raised their feed prices. Most of that early increase was due to globalization, the later increases were due to ethanol and EPA mandates.

American ranchers were making out good till they started to be beat out due to cost, for a lot of meat now it is cheaper to import.

Look at the imports of live cattle from Australia.


3 posted on 04/19/2016 5:42:40 AM PDT by dila813 (Go Cruz!)
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To: expat_panama

So did ethanol.


4 posted on 04/19/2016 5:43:10 AM PDT by b4its2late (A Liberal is a person who will give away everything he doesn't own.)
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To: expat_panama

I suppose this “writer” never heard of the ethanol mandate.

Stupidity on skates.


5 posted on 04/19/2016 5:44:42 AM PDT by FirstFlaBn
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To: dirtboy

That’s why we need real growth, we are going down further if we don’t return to 3%+ average growth.


6 posted on 04/19/2016 5:45:08 AM PDT by dila813 (Go Cruz!)
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To: dila813

Their goal is to get everyone to eat the grass in their own yards.


7 posted on 04/19/2016 6:05:41 AM PDT by stockpirate (Rush is a low information talk show host concerning Ted sCruz and Marco foamboy Rubio.)
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To: dila813

Nonsense. Ever heard of DDG’s?


8 posted on 04/19/2016 6:09:25 AM PDT by cornfedcowboy
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To: expat_panama

This author needs a better understanding of economics. It is entirely a political rant. To equate the consumer price of certain commodities with the effects of global trade is hogwash.

The major reason for the increase in US food prices is the unintended consequence of the ill conceived renewable fuel ethanol mandate. It has increased the price of feed for every farmer, and as a result, herd sizes of all types of livestock have been decreased, resulting in higher food prices. This is a gross oversimplification of a complex system, but it is a good basic overview.

In almost every market, it is government interference that distorts and subverts true market forces. It is an unseen tax on every activity, product, and facet of daily life. In their wildest dreams, no monarch that ever reigned would have been able to crush their producers the way we do now.

This is another reason for true conservatives to support Cruz. He gets the regulatory state, and he wants to bring it down for real. Trump has played the system his whole life, why should we think that he wants to change it.


9 posted on 04/19/2016 6:11:44 AM PDT by LurkLongley (Ad Majoram Dei Gloriam-For the Greater Glory of God)
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To: stockpirate
< Their goal is to get everyone to eat the grass in their own yards.

Beef has gone sky high. Chicken is now where beef used to be. In fact the price of all groceries went sky high under the Muslim tyrant's reign. It was a very noticeable climb at times where items would jump by 10% or more at a time..not just once but several times. Paper items too like toilet paper jumped way up and I bet it had to do with environmental regulations. The man's actions Have caused everything to rise in price.

10 posted on 04/19/2016 6:14:16 AM PDT by jsanders2001
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To: dirtboy
The price of living has risen while real wages have declined. That is the pain point for millions in this country.

That is undeniably true. And it is the PERFECT formula for Socilaist upheaval and revolution. And yet the elites are in utter, complete denial over it.


11 posted on 04/19/2016 6:15:17 AM PDT by Buckeye McFrog
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To: LurkLongley
...author needs a better understanding of economics....

Maybe, but remember the goal was never understanding econ, his goal is getting his copy published.  He's obvously pretty good at it...

12 posted on 04/19/2016 6:20:51 AM PDT by expat_panama
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To: dirtboy
The part that matters on that graph is from 2010 onwards.

Agreed, because 'globalization' has nothing to do w/ the latest econ probs.

13 posted on 04/19/2016 6:21:09 AM PDT by expat_panama
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To: expat_panama

>> ...All types and grades of beef have seen prices explode since the mid- to late-1990s.

I live in oil and cattle country. (More head of cattle in our county than there are people.)

We look at matters like oil and beef prices a little differently as a result. :-)


14 posted on 04/19/2016 6:22:07 AM PDT by Nervous Tick (There is no "allah" but satan, and mohammed was his demon-possessed tool.)
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To: expat_panama

You can adjust the price of food for inflation but what
about income? That’s where the gap is. The cost of food
can rise right along with inflation but income always lags.
I think that that is the reason they are pushing for a higher
minimum wage as they try to inflate ourselves out of debt.
By raising the minimum wage you adjust the income at the
bottom for inflation which puts the burden and outright
theft on business and peoples retirement and any other
monetary assets.

As far as I can tell the price of beef is up because of
drought, lower than average steer weight.


15 posted on 04/19/2016 6:22:35 AM PDT by Slambat
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To: stockpirate

>> Their goal is to get everyone to eat the grass in their own yards.

No problem. Mind if I make that grass into meat first?


16 posted on 04/19/2016 6:24:24 AM PDT by Nervous Tick (There is no "allah" but satan, and mohammed was his demon-possessed tool.)
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To: cornfedcowboy

you think that you get more DDG than the grains input into the process? This byproduct isn’t a replacement for the cereals that are consumed.


17 posted on 04/19/2016 6:25:53 AM PDT by dila813 (Go Cruz!)
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To: expat_panama
I thought the increase to the cost of meat had more to do with the making of ethanol?
18 posted on 04/19/2016 6:35:10 AM PDT by Chgogal (Obama "hung the SEALs out to dry, basically exposed them like a set of dog balls..." CMH)
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To: Nervous Tick
We look at matters like oil and beef prices a little differently

Not to worry, when beef prices go up Trump & Co. can say globalization's making the little guy starve, and when they go down he can demand more price supports to repair the damage globalization did to U.S. producers. 

He can't lose!

19 posted on 04/19/2016 6:37:31 AM PDT by expat_panama
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To: expat_panama

I disagree. Immigration is a very large reason for wage stagnation. I know it impacts me as an older IT worker.


20 posted on 04/19/2016 6:50:31 AM PDT by dirtboy
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