Egypt and Beyond- Food Shortage
While Egyptians struggle to feed their families, we may be struggling to feed our autos. Our food expenses total 12% and our transportation expenses run 17%. Did someone say, “light rail?” Yes, but not on the government budget. Let investors pony up the money.
As food prices continue to rise, per cent of income for fixed and low income will put the squeeze on everything but transportation and housing. One would assume that, but we can never be sure with the U.S. consumer. iPads, iPods, and iPhones indicate that U.S. consumers are more interested in style than rational spending.
Again, one should understand this is a national average. The average income in the accompanying table is $63,000+ spending on average $49,600+. This would be far more helpful when looking at an average income of under $35,000. The ratio breakout for household $35k and below should look substantially different. We know the alcohol and tobacco expenditures for lower income household exceeds the national average, but their cell and data charges are probably a lot lower.
If you were to poll the U.S. excluding those earning below $70k a year, we would hear very little about food costs being a critical issue. To my knowledge we have not heard a debate started by either the administration, nor the congress on spiraling food costs. Could that be because no one in D.C. reads anything but pre-approved party news? And, the Federal Reserve continues to exclude food and gas from inflation.
How many lawmakers in D.C. wondered why the people Egypt had a food shortage? Does anyone in congress other than a couple of congress persons from Iowa and Nebraska know the current world corn supply number? And if they did would they care? Corn is for hicks, right? Do you know? Do you care? You might work on that. Much of the world includes corn as a diet staple these days. No corn, and the world become a much angrier place.
