Post by wyomama on Oct 25, 2004 11:29:52 GMT -5
How super mark-ups are choking food buyers
Saturday, October 09, 2004
BY SILVIO LACCETTI
I don't think I will survive much longer. Not if food prices keep going up the way they have been in the past five to six years. Sure, all our indicators show a cost-of-living increase of approximately 16 percent since September 1998. But America's food shoppers have seen price increases of 40 percent, 50 percent and more in too many products.
Such increases are 250 percent to 300 percent more than the inflation rate. Voters of both parties feel this choking reality because we all have to eat, yet it is rarely alluded to in presidential campaigns and almost totally ignored by social commentators.
Just how bad is the situation? I begin with my own "survey," in which I used actual saved receipts that included purchase prices for the same-brand items. Sizes and weights were the same for every item compared. Prices were regular shelf prices from two New Jersey supermarkets, A&P and ShopRite.
From September-October 1998 to the week of Sept. 20, 2004, I found the following:
At A&P: Post Banana Nutcereal, up 43 percent to $4.29; a package of six A&P kaiser rolls, up 116 percent to $2.79; Progresso soup, up 41 percent to $2.39 a can; a package of house brand spinach, up 54 percent to $2.29.
At ShopRite: Kellogg's Crispix cereal, up 39 percent to $3.89; a can of ShopRite sauerkraut, up 48 percent to $0.49; Herbox bouillon packets, up 51 percent to $1.19; broccoli, up 101 percent to $1.99 a bunch; Swisschard, up 39 percent to $1.29 a pound; a quart of Parmalat milk, up 46 percent to $1.59.
Comparisons from September-October 2000 reveal similar outrageous inflation.
At ShopRite: sliced Italian style Wonder Bread (on sale), up 51 percent to $1.50; Freihoffer's soft rye pumpernickel (my favorite bread), up 35 percent to $3.09.
At A&P: mini-danish breakfast treats, up 50 percent to $3.99. Lately I can't find them in stock.
Bounty paper towels were up 45 percent; the cheapest brand name dish detergent was up 18 percent.
Good news: The water from United Water Company is still $0.02 a gallon.
It seems we have become a nation of food shoppers dependent on fliers announcing sales, coupons offering bargains, and price-club cards that track every item we ever buy with them. Such devices tell us what we can afford to eat in any given week.
Why is the terrible inflationary situation overlooked? In good part, it is because of the way we define a "market basket of goods and services." Food counts for only 16 percent of the cost of living. Funny things are found in hidden corners of this basket, under "miscellaneous": for example, golf club memberships, chain saws, DVD players and other, now cheap high-tech gizmos. Declines in these costs bring down the overall rate of the cost-of-living increase.
Another reason for overlooked hyperinflation lies in a game of hide-and-seek between chain store food executives and Department of Labor field workers.
The government specially trains its inspectors to look for the loaves of store-brand bread that are on sale for 99 cents or less. Store personnel make sure they find them. Hence, in the mythical market basket, bread has been 99 cents for years.
This game has to end.
Perhaps we could do a few things to improve the situation, such as take advantage of the free products of nature. Grasses and leaves could replace green-leafed vegetables, acorns may be a good source of protein, and bark from trees and woody plants might be employed in various gourmet ways. But as the disclaimer states, I wouldn't try this at home.
A Marie Antoinette, noting that the price of a certain citrus fruit has remained unchanged for six years, might graciously say, "Let them eat lemons."
Well, I don't want lemons. I want a lemon-meringue pie ($3.99 at ShopRite).
Silvio Laccetti is professor of Humanities at Stevens Institute of Technology in Hoboken.
He may be reached at slaccett@stevens.edu.
Copyright 2004 NJ.com. All Rights Reserved.
Saturday, October 09, 2004
BY SILVIO LACCETTI
I don't think I will survive much longer. Not if food prices keep going up the way they have been in the past five to six years. Sure, all our indicators show a cost-of-living increase of approximately 16 percent since September 1998. But America's food shoppers have seen price increases of 40 percent, 50 percent and more in too many products.
Such increases are 250 percent to 300 percent more than the inflation rate. Voters of both parties feel this choking reality because we all have to eat, yet it is rarely alluded to in presidential campaigns and almost totally ignored by social commentators.
Just how bad is the situation? I begin with my own "survey," in which I used actual saved receipts that included purchase prices for the same-brand items. Sizes and weights were the same for every item compared. Prices were regular shelf prices from two New Jersey supermarkets, A&P and ShopRite.
From September-October 1998 to the week of Sept. 20, 2004, I found the following:
At A&P: Post Banana Nutcereal, up 43 percent to $4.29; a package of six A&P kaiser rolls, up 116 percent to $2.79; Progresso soup, up 41 percent to $2.39 a can; a package of house brand spinach, up 54 percent to $2.29.
At ShopRite: Kellogg's Crispix cereal, up 39 percent to $3.89; a can of ShopRite sauerkraut, up 48 percent to $0.49; Herbox bouillon packets, up 51 percent to $1.19; broccoli, up 101 percent to $1.99 a bunch; Swisschard, up 39 percent to $1.29 a pound; a quart of Parmalat milk, up 46 percent to $1.59.
Comparisons from September-October 2000 reveal similar outrageous inflation.
At ShopRite: sliced Italian style Wonder Bread (on sale), up 51 percent to $1.50; Freihoffer's soft rye pumpernickel (my favorite bread), up 35 percent to $3.09.
At A&P: mini-danish breakfast treats, up 50 percent to $3.99. Lately I can't find them in stock.
Bounty paper towels were up 45 percent; the cheapest brand name dish detergent was up 18 percent.
Good news: The water from United Water Company is still $0.02 a gallon.
It seems we have become a nation of food shoppers dependent on fliers announcing sales, coupons offering bargains, and price-club cards that track every item we ever buy with them. Such devices tell us what we can afford to eat in any given week.
Why is the terrible inflationary situation overlooked? In good part, it is because of the way we define a "market basket of goods and services." Food counts for only 16 percent of the cost of living. Funny things are found in hidden corners of this basket, under "miscellaneous": for example, golf club memberships, chain saws, DVD players and other, now cheap high-tech gizmos. Declines in these costs bring down the overall rate of the cost-of-living increase.
Another reason for overlooked hyperinflation lies in a game of hide-and-seek between chain store food executives and Department of Labor field workers.
The government specially trains its inspectors to look for the loaves of store-brand bread that are on sale for 99 cents or less. Store personnel make sure they find them. Hence, in the mythical market basket, bread has been 99 cents for years.
This game has to end.
Perhaps we could do a few things to improve the situation, such as take advantage of the free products of nature. Grasses and leaves could replace green-leafed vegetables, acorns may be a good source of protein, and bark from trees and woody plants might be employed in various gourmet ways. But as the disclaimer states, I wouldn't try this at home.
A Marie Antoinette, noting that the price of a certain citrus fruit has remained unchanged for six years, might graciously say, "Let them eat lemons."
Well, I don't want lemons. I want a lemon-meringue pie ($3.99 at ShopRite).
Silvio Laccetti is professor of Humanities at Stevens Institute of Technology in Hoboken.
He may be reached at slaccett@stevens.edu.
Copyright 2004 NJ.com. All Rights Reserved.