Fears that the U.S. drought will drive up food prices next year are mostly unfounded, WSJ's Josh...

Fears that the U.S. drought will drive up food prices next year are mostly unfounded, WSJ's Josh Mitchell writes, calculating the average consumer will spend only an extra $2.73/month. Food accounts for only ~14% of consumers’ daily living expenses, and given that prices for other items are falling or subdued, overall inflation likely will remain muted. (also)
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Comments (9)
  • montanamark
    , contributor
    Comments (1455) | Send Message
    yeah who cares about $4 gas or high food prices - everything is fine;
    dont worry get food stamps and welfare - its the new thing
    8 Aug 2012, 03:53 PM Reply Like
  • Terry330
    , contributor
    Comments (883) | Send Message
    I more worried about the very wealthy (Romney) not paying any taxes, and moving American jobs to China.
    8 Aug 2012, 03:56 PM Reply Like
  • jw4golf
    , contributor
    Comments (339) | Send Message
    good to see the dnc types read this, can you give me your source terry?
    8 Aug 2012, 03:59 PM Reply Like
  • Neil459
    , contributor
    Comments (2636) | Send Message
    "I more worried about the very wealthy (Romney) not paying any taxes, and moving American jobs to China."


    You mean like the 100 million spent on European Soccer instead of US Football by government motors (GM). Or the closing of oil drilling in the gulf for over a year (moving all of the offshore rigs to other countries), or the investing in Brazillian Oil by the US Government. How about the shutdown of 100s of GM dealers just because they were owned by Republican's.


    If your really worried about what you say, then you'd better start looking at the democrats you support. Because they are just plain lying to you and then implementing the worst for American Jobs.


    Why are you not posting about the confirmed tax cheat Geitner that is in charge of the IRS. Oh yea, he and other democrats have admitted cheating the government and your ok with it. I guess its ok for your party to steal the American public blind, but not for Republican's.


    What a double standard.
    8 Aug 2012, 04:26 PM Reply Like
  • bbro
    , contributor
    Comments (11216) | Send Message
    On to the next worry...
    8 Aug 2012, 03:56 PM Reply Like
  • maven pharm
    , contributor
    Comments (256) | Send Message
    Food prices have gone up. But if you go to the supermarket most of the aisles have sugary, oily, and salty junk . If you stay with basic vegetables and basic protein you can still stay healthy on a shoe string
    8 Aug 2012, 04:15 PM Reply Like
  • Whitehawk
    , contributor
    Comments (3121) | Send Message
    Milk prices have started to noticeably climb for the first time in years...
    8 Aug 2012, 04:41 PM Reply Like
  • Russ Winter
    , contributor
    Comments (690) | Send Message
    Sure, just put it on the tab. Unfortunately a lot of America lives in near third world conditions. 20-30k earners spend 18% on food, 15-20k: 19%, 10-15k: 30%.


    A now we have a 40 cents gasoline spike since July 4th.
    8 Aug 2012, 05:31 PM Reply Like
  • Red the Bear
    , contributor
    Comments (30) | Send Message
    Not sure how Mr. Mitchell can support his calculations but I do believe he lives somewhere other than anywhere around me. I acknowledge that the US pays some of the lowest prices for food in the world BUT I must somewhat agree with Mr. Winter that at the lower income levels of household income the percentage of cost for food increases disproportionately to the decrease in income.
    Also, as Mr. Winter pointed out the recent increase in fuel prices has a direct and disproportionate effect on the price food since more than 3/4 of the food purchased is produced many miles from the ultimate consumer, and the production cost, the fuel use by the farmer, raises the wholesale price which is then multiplied many times by the time it reaches the buyer.
    Another factor that the bean counters have not taken into account is the fact that is that many areas that have been effected by the drought have placed water use restrictions in place severally limiting the use of irrigation in the production of crops. These restrictions will not be not be eased in the near future because of the severely lowered water tables in the deep water aquifers in the drought areas, and the ban on using the polluted water from the streams and rivers for the production of food crops. These food crops are not just the food for people but also those used for livestock, the chickens, pigs, cows etc that we eat.
    This has forced many farmers to sell of herds of livestock creating a temporary glut on the market bringing cheap prices now but reduced availability in the future with increased prices. Because of the market glut, the prices for these animals is down so the farmer is not recouping his costs and will not have the monies next year to start these herds next year. And even if he manage to get the money to restart, the time factors involved in rebuilding is not an immediate resolve. These factors and the reality fact that a great many of the production farms in this country are operated by corporations that are looking at bottom line profit return, i.e., costs are going up!
    If anyone out there thinks, well, we will just import more from other countries, remember the USA is the bread basket of half the world! Think of all the wheat, corn, rice, etc. we export. The world used to paying more for food and they will continue to, and we will too.
    My advice to the readers of this is similar to that of maven pharm above, learn to grow a simple garden and eat vegetables and simple protean diet. You will be surprised what you can grown in just a few square feet. And don't come at me with "Oh I live in the city"! Window boxes, roof top gardens, and empty lots kept most of Europe alive at the end and after WWII.
    I AM NOT calling for the end of the world, or of the USA. Just telling you that this is a situation that is not going away tomorrow. We are not going into a starvation situation or anything like it but food is going up and I have stated why above and provided you information to get through it with a minimum of expense and inconvenience.
    Just been there, done that, lived through it, and now I have told you.
    9 Aug 2012, 04:06 PM Reply Like
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