Record-high egg prices likely

Record-high egg prices likely

“Expect record-high egg prices for most of the year,” CNN says:

Americans can continue to expect high prices for eggs this year, new estimates show, due to the ongoing avian flu outbreak and inflation.

Egg prices are estimated to increase about 20% in 2025, compared to about 2.2% for food prices in general, according to the US Department of Agriculture’s price outlook….eggs are uniquely impacted by the aggressive strain of avian flu, which has strained supply….many [states] have reported a resurgence of the virus, which killed about 17.2 million egg-laying hens in November and December…

The average price of a dozen large, grade-A eggs was $4.15 in December, up from $3.65 in November… Egg prices were also up more than 36% year-over-year in December….“Not to be the bearer of bad news, but we’re in this for a while,” said Emily Metz, president and CEO of the American Egg Board. “Until we have time without a detection, unfortunately this very, very tight egg supply is going to continue.”

The industry has seen more than 20 consecutive months of record-high demand….Some grocers have put limits on how many eggs a shopper can buy on one trip…As long as the avian flu persists, so will high prices. There are outbreaks in California, Indiana, Missouri, North Carolina and Ohio, the USDA said. About 8.3 million birds have died in January because of those outbreaks, according to the USDA.

Manufacturers and egg wholesalers have also drastically increased their prices in recent months. In New York, the wholesale price of large-carton eggs rose to $7.24 per dozen, while in the Midwest it increased to $6.84. In California, large eggs declined to $8.35 per dozen.

Inflation has been lower for most other consumer goods. But inflation in general increased since 2021 due to rising government spending according to economists like Bill Clinton’s Treasury Secretary, Larry Summers, and Obama advisor Steven Rattner. As Rattner noted in the New York Times, President Biden spent “an unprecedented amount” of taxpayer money, which resulted in “too much money chasing too few goods.”

Thanks to this massive spending, the federal budget deficit doubled to roughly $2 trillion in 2023, noted the Tax Foundation. This doubling “is basically unprecedented in U.S. history during relative peace and prosperity,” notes economist Brian Riedl. This was due to a “massive spending spree” by President Biden, soaring interest rates on the national debt that resulted from Biden’s policies, and continuing increases in entitlement spending, noted Riedl:

This year’s 7.6% of GDP budget deficit has been exceeded only during the depths of World War II, the great recession, and pandemic. Deficits didn’t even hit these heights during the Great Depression, Korean War, Vietnam War, or Reagan defense build up.

Deficits are supposed to rise during war & recessions and then fall during peace & prosperity. A $1 trillion jump in a single year with no war or recession has long been considered nearly impossible. (These figures exclude the student loan bailout that was never implemented).

President Trump’s tax proposals, such as abolishing taxes on tips, would further increase the federal budget deficit. Exempting tips from taxation would encourage employers and others to reclassify income as tips to evade taxes.

LU Staff

LU Staff

Promoting and defending liberty, as defined by the nation’s founders, requires both facts and philosophical thought, transcending all elements of our culture, from partisan politics to social issues, the workings of government, and entertainment and off-duty interests. Liberty Unyielding is committed to bringing together voices that will fuel the flame of liberty, with a dialogue that is lively and informative.

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