ARC's 1st Law: As a "progressive" online discussion grows longer, the probability of a nefarious reference to Karl Rove approaches one

Thursday, July 26, 2007

Law of Supply & Demand

To further prove the point that MontereyJohn made yesterday that switching to Ethanol isn't a quick fix to our energy prices (and dependence on foreign oil), the St Louis Post-Dispatch Piece of Trash has this article in today's paper:

Emerging global milk market drives up ice cream prices
By Repps Hudson
Thursday, Jul. 26 2007

In the last month, Beckie Jacobs has had to do what no owner of an ice cream store likes: She hiked the price of her specialty ice cream cones 10 cents.

For kids who are among her faithful customers, that dime increase in a tasty, cold treat could mean the difference between licking a favorite flavor and skipping it.

"I just bought a gallon of milk for $4," said Jacobs, owner of Serendipity Homemade Ice Cream in Webster Groves. "That's ridiculous."

Hang on.

Lori Willis, spokeswoman for Schnuck Markets Inc., said the price of a gallon of whole milk will jump another 10 cents Wednesday.

And Scott Brown, a dairy expert at the University of Missouri's Food and Agricultural Policy Research Institute in Columbia, predicts that milk prices nationally soon will top the record of $3.57 a gallon set in June 2004. That was the year that dairymen slowed their rate of growth of production, following two hard years of lower prices.

Nationally, whole milk prices averaged $3.43 per gallon in June, up 14 percent from a year ago.

It isn't just milk. Food prices are going up all over, driven in part by higher fuel costs and competing demands for grain that can be used for fuel or food for livestock.

Now, for some reason, the P-D does not resort to calling for government action to maintain the price of milk and other food products. Nor do they call for Universal Coverage of purchases of food - which, I should remind everyone, is an absolute requirement for any citizen to exercise their inalienable right to Life, Liberty, and the pursuit of Happiness.

However, the Post-Dispatch's headline does seem to indict the Market for the increased prices when, perhaps more accurately, one can say that the government's actions over the past year have been a driving force in these changes. Specifically, it's the governments actions / stated intent, and inactions which have resulted in the increased pricing, such as:
  1. the Feds having a renewed interest in using food crops to fuel our economy; and
  2. the Feds lack of interest in allowing for renewed exploration for domestic energy sources, their unwillingness to allow for renewed investment in our refining capacity, and their unwillingness to authorize creation of any new nuclear plants to power the infrastructure.

While they didn't make these points, I guess I should be happy that they at least did not lay the blame on the cold hand of capitalism.

When someone takes a step in the right direction, you have to congratulate them and hope they continue on the path.

Your Co-Conspirator,
ARC: St Wendeler

Comments (4)
Monterey John said...

Major horror story: Apparently Mexican farmers have gotten the memo: Tequilla prices are rising as the Mexican farmers replace the plant from which this elixir is made with corn to meet demand for ethanol ergo supply of Tequilla is falling but not so demand.

Oh the humanity!

St Wendeler said...

There were also riots a few months ago as the price of tortillas in Mexico skyrocketed.

Anonymous said...

I'd like to hear some good reasons why Universal Foodcare isn't a priority over Universal Healthcare.

Brian said...

As a former Webster Groves resident, Serendipity has the best ice cream (real ice cream, not frozen custard) in the city.

It however was about the most expensive (hand-made) ice cream on the planet.