Earlier quoted context omitted.
This true, but it's actually not the proximate cause for higher food prices: excess stimulus and higher energy prices are. 1. Government spent $1T. 2. Fed made it stupidly cheap to borrow money. 3. We have under invested in the oil and gas industry for years, further industry consolidation after the COVID crash has led to high natural gas and diesel prices. We lack the equipment, manpower, and capital to expand. 4. F…
I hope this doesn't get buried. I don't know enough to agree or disagree, so I'd like to see how people respond.
[0]: Energy and Food Security: Linkages through Price Volatility https://www.sciencedirect.com/science/article/pii/S030142151...
[1]: Nat gas and fertilizer https://www.marketwatch.com/story/fertilizer-prices-soaring-...
[2]: Biden's Stimulus Is Stoking Inflation, Fed Analysis Suggests
https://www.nytimes.com/2021/10/18/business/economy/fed-infl...
[3]: Biden’s ‘America First’ Policies Are Spreading Global Pain (Adviser during Trump admin)
https://foreignpolicy.com/2021/05/12/biden-global-food-infla...
[4]: Yellen Wanted Biden Relief Plan Cut by a Third, Biographer Says (Recent article, but mentions her hang ups in 2021)
https://www.bloomberg.com/news/articles/2022-06-04/yellen-wa...
Another thing to consider is that the Fed bought bonds issued by any high-grade corporation in the US. There was record issuance during 2020-2021. This means that those companies now have more cash on their balance sheets they can use to steer the economy going forward... so yes Apple can pay $22 an hour as a base rate now in part because they borrowed $12.5B last year but your local community hospital with razor thin margins can't compete with that. Also, many people were able to retire early from stock appreciation and home value appreciation alone which put a huge dent in the labor force.
There are a LOT of distortionary effects that remain to be seen from the stimulus alone. Now add deglobalization to the mix, and everything becomes even worse.