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100% this but the macroeconomics of it are simple, by pushing low interest housing and food goes up astronomically so the economy ends up with the backbone of t

100% this but the macroeconomics of it are simple, by pushing low interest housing and food goes up astronomically so the economy ends up with the backbone of the labor force (>$20/hr) being priced out of everything. The only fast solution here is subsidizing living which many governments are doing but it won't fix the problem they created in the first place and now they have to deal with either dramatically raising rates and saddling the people with horrendous debt due to bond yields and defaulting, etc or riding it out and lying about real inflation with small raises.

creato 5y ago
I agree low interest rates inflate housing prices, but I don't think that has much to do with food prices. I think food prices are being inflated simply by more people having more money to spend (pandemic unemployment/stimulus, higher wages for some).
- jnosCo 5y ago
  You think people are buying more food?
  - dnautics 5y ago
    No, food providers can extract higher prices for food.
    - Thorrez 5y ago
      This makes me wonder about competition. Theoretically if there's competition, one food provider could offer food for the old price, or halfway in between and attract all the consumers and make extra money from the additional business.
- causi 5y ago
  Food availability is also suffering. I haven't been able to find wings at a Zaxby's in months. Many places have switched to lower quality ingredients, like Wendy's switching their buns and chicken breasts.
  - creato 5y ago
    Because more people can afford to buy them...
    - hattmall 5y ago
      That's not at all the cause. It's because our supply chains and logistic networks are very tight for maximum profit and efficiency. Any disruption, like 500,000 people dieing unexpectedly, trucks being diverted to carry medical supplies or toilet paper and any overseas part delivery delays cause large ripple effects. Millions, if not billions of broiler chickens were disposed of over the last year because they couldn't get delivered or processed. Similar situations are happening all over, we are getting fewer and fewer trucks on the road each week due to routine mechanical issues that can't be fixed because the parts aren't available. The logistics problem is continuing to spiral, ships backed up are now not returning on time so factories are backed up and forced to shutdown production. People not in production and logistics are severely underestimating how bad this is going to be. This is the beginning of the shortages.
- mjevans 5y ago
  I think food prices are going up as a combination of three factors: 1) PRIMARY factor. The rent is too damned high. It has been and people have been cramming together like sardines; but just like the car rush as PPE bubbles, now people want all the housing everywhere even MORE than the last 30-50 years when it wasn't being built sufficiently to accommodate demand by jobs. 2) The lowest end workers finally got enough of a lifeline, even if only for a short time, to realize how badly they were underpaid and how much they need to really have a modestly OK life. Combine with all the services that let them work in the first place (care for children, like daycare and schools) unable to provide due to the pandemic and this is hard-stalled between less workers and workers who hold out for more in what is finally a sellers market. 3) I don't have first hand observational data on this, but my gut feeling is that it's harder for businesses that used to do under the table work with citizens / undocumented immigrants to fully staff, and all the more likely for the pandemic to harm tightly packed workers in processing places. It would be nice to hear more about documented guest worker programs that legitimize migrant worker practices, while also ensuring that they're paid enough to discourage undercutting the local job market. I'll also note: Rent affects the businesses too... and food prices might go up based on their (mistaken) belief that consumers can afford to pay more. I have cut back to lower quality options and rarer treats for some options in the last half year as prices have risen past the points I'm willing to buy at.

creato 5y ago

I agree low interest rates inflate housing prices, but I don't think that has much to do with food prices. I think food prices are being inflated simply by more people having more money to spend (pandemic unemployment/stimulus, higher wages for some).

jnosCo 5y ago
You think people are buying more food?
- dnautics 5y ago
  No, food providers can extract higher prices for food.
  - Thorrez 5y ago
    This makes me wonder about competition. Theoretically if there's competition, one food provider could offer food for the old price, or halfway in between and attract all the consumers and make extra money from the additional business.
causi 5y ago
Food availability is also suffering. I haven't been able to find wings at a Zaxby's in months. Many places have switched to lower quality ingredients, like Wendy's switching their buns and chicken breasts.
- creato 5y ago
  Because more people can afford to buy them...
  - hattmall 5y ago
    That's not at all the cause. It's because our supply chains and logistic networks are very tight for maximum profit and efficiency. Any disruption, like 500,000 people dieing unexpectedly, trucks being diverted to carry medical supplies or toilet paper and any overseas part delivery delays cause large ripple effects. Millions, if not billions of broiler chickens were disposed of over the last year because they couldn't get delivered or processed. Similar situations are happening all over, we are getting fewer and fewer trucks on the road each week due to routine mechanical issues that can't be fixed because the parts aren't available. The logistics problem is continuing to spiral, ships backed up are now not returning on time so factories are backed up and forced to shutdown production. People not in production and logistics are severely underestimating how bad this is going to be. This is the beginning of the shortages.
mjevans 5y ago
I think food prices are going up as a combination of three factors: 1) PRIMARY factor. The rent is too damned high. It has been and people have been cramming together like sardines; but just like the car rush as PPE bubbles, now people want all the housing everywhere even MORE than the last 30-50 years when it wasn't being built sufficiently to accommodate demand by jobs. 2) The lowest end workers finally got enough of a lifeline, even if only for a short time, to realize how badly they were underpaid and how much they need to really have a modestly OK life. Combine with all the services that let them work in the first place (care for children, like daycare and schools) unable to provide due to the pandemic and this is hard-stalled between less workers and workers who hold out for more in what is finally a sellers market. 3) I don't have first hand observational data on this, but my gut feeling is that it's harder for businesses that used to do under the table work with citizens / undocumented immigrants to fully staff, and all the more likely for the pandemic to harm tightly packed workers in processing places. It would be nice to hear more about documented guest worker programs that legitimize migrant worker practices, while also ensuring that they're paid enough to discourage undercutting the local job market. I'll also note: Rent affects the businesses too... and food prices might go up based on their (mistaken) belief that consumers can afford to pay more. I have cut back to lower quality options and rarer treats for some options in the last half year as prices have risen past the points I'm willing to buy at.