Inflation – Ground Beef Has Doubled In Price
Inflation Doubled the Price of food Items Like Ground Beef Since the Last Financial Crisis.
Inflation, with its infinite reach into our individual growth, has again hit American citizens. The price of Ground meat has nearly doubled since the last recession. Has your salary doubled?
Although the Fed has assessed that we are safely sailing through a “low inflation” environment, the truth is the opposite. Ground beef, a necessary food, has seen a tremendous rise in price over the last six years. With its price just over $2 in 2009, Ground beef hit the alarming price of $4.23 per pound by the end of February this year. According to an estimate, Americans eat nearly 270 pounds of meat a year; this amount is only second to Luxembourg. Meat being a favorite among the American dietary selections, its price has a very large effect on fellow citizens.
This would hardly have been a problem if people were to experience a similar increase in their pay scales. The real median income of an American household has been falling sharply and is even lower than the value during the difficult days of the last recession. The middle class is feeling the heat and getting pushed to the point where they will consider “burgers” as a luxury item.
Bureau of Labor Statistics has recently released a chart showing the price of ground beef. Its price increased at such a sharp rate that one could hardly comprehend the reasons behind it. The real cause for this unprecedented increase in the price of beef has been the constant decrease of cattle in the US for almost seven years in a row. Although, the Cattle herds grew by at least one percent the last year, this trivial change is hardly enough to tackle the rising demand for meat and beef.
In addition to this, if we factor in the possibility of another drought this summer, we get a very bleak scenario of the beef’s future price.
The most intriguing part of the story is that food prices on average have caught the uptrend in general.
It just eludes the mind to think that the Fed is claiming that we are in a low inflationary environment. Just visit any supermarket and check the prices yourself.
These high prices and a low salary environment have left very less for a typical American to save. They just cannot afford to save. These people are feeling the burn of the “real inflation”.
The most noteworthy fact of all in this bleak picture is the truth that there are just not enough good jobs out there. Middle class respectable jobs have become a rarity that few can enjoy. The most common jobs in America today are “retail sales clerk” and “cashier”, according to the BLS. The average yearly pay for these jobs is in the range of 20K-24K a year. They barely make enough to support a family.
As the reality of low class jobs becomes more evident among the society, families have to work hard to make ends meet.
Well, according to the Federal Reserve, we are at full employment and the situation has never been better.
If you want to hear the truth then understand that, the situation will not improve. It will only get worse. With a falling GDP growth estimate this quarter from the beloved Fed and falling corporate profits, the reality will soon become evident.
The false bubble of economic stability will soon burst. We are at the edge of a long fall down the hill of economic collapse. Whether it is food prices or any other necessity, prices have and will rise.
Owning Gold and Silver in physical form provides individuals and families safety and protection from inflation and declining purchasing power.