Food Prices On The Rise

Here is the article reporting this.

U.S. food prices rose 4 percent in 2007, compared with an average 2.5 percent annual rise for the last 15 years, according to the U.S. Department of Agriculture. And the agency says 2008 could be worse, with a rise of as much as 4.5 percent.

Let's see if we can parse this a little for our edification, shall we?

Gasoline goes up, food goes up. In fact, when fuel goes up, pretty much everything goes up. It's called "the cost of doing business".

As necessary goods become more expensive, consumers buy less expensive durable goods (like electronics) and unnecessary non-durables (like computer games and CDs). Naturally, non-durable goods will go up faster than durable ones. The reason is not elusive, durable goods have a slower turnover. They last longer, so there are less deliveries. So if there are less of those, there is most certainly less need for delivery truck fuel. You cannot fax a truckload of milk or bread. It needs trucks with gas and a set of hands to pull it off of the truck, so it can be put on the shelves, ready for purchase (before it expires).

But spoilage being what it is, there is a solution that is not popular in some circles. It is a solution that the environmental lobby has fought against tooth, gum, and nail. It may not be a long-term solution, immediate problems do not respond well to long-term solutions.

It's time to drill in ANWR and build some more refineries.And while we are doing this, we must be searching for viable alternative energy sources. it's time to stop talking about this, time to start action. And if Greenpeace is unhappy, so be it.