Posted by WARREN MOSLER on January 25th, 2010
> (email exchange)
> On Mon, Jan 25, 2010 at 1:25 AM, Roger wrote:
> birds eye view: my son’s 1st weekend back at Google hq in Mountain
> View after a visit home (he only buys food for weekends)
> can only get worse this year;
> the “costs” of financial policy, health burdens & healthcare all run
> together yet few recognize one of Shewhart’s maxims about the statistics
> of ANY complex system: “Tune the system, not the components!”
> we’ve apparently gone from LBJ’s “War on Poverty” to a war on poor people;
I went to the store to buy two meals worth of food for myself. I don’t habitually look at prices when I buy food, I figure that’s the one place where I ought not to cut corners so I focus on the ingredients instead. I get to the counter, and the bill is $31.34 to my great surprise.
parmesan cheese 4.99
tomato sauce 4.69
That’s going to be supplemented with milk, juice and tea I already have at home, adding slightly to the cost.
Maybe I’m buying fancy stuff, but it doesn’t feel like it. In contrast, I can get a comparably complete meal with way more food than I need at a restaurant for less than $10 even now. Something is really out of whack with the cost of food. The only way to eat more cheaply at home is to buy less nutritious stuff. I didn’t check the price of other produce, but I’ll bet even vegetables are pricey. In even greater contrast, the last meal I ate at work must have cost a ton. Sushi, italian sausage, green salad with 3 kinds of greens and 5 kinds of nuts, lima beans, soybean sprouts, pomegranate kernels, carrots and beets, etc, etc.
If economic conditions are forcing people to eat more cheaply, I predict they’ll eat more McDonalds and wonder bread, while the wealthy will live well. Not good.
Yes, that’s what an export economy looks like you have a job and produce, but you only earn enough to eat and buy gas to get to work as your output gets exported.
We aren’t there yet, but on the way.