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Title: Food prices forecast to rise by 5 per cent in Canada
Category: Economics
Posted By: wildrosegirl
Date: 2011-02-05 08:11:09
Canadian

   

Figures.

   

People can just eat less.

   

That seems to be what is expected of us when the prices jump on an essential item.

Pay up, or use less and stop bitching.

   

Pretty much. I have four acres so I'll be growing a lot of my own food.

   

Not just "can", people WILL purchase less food if food prices increase. Food, in general, and virtually all food products, specifically, have inelastic demand. This means that, even though people will eat less as a result of a 5% increase in prices, they will still spend more on food than prior to the price change. Of course, this is bad for consumers' economic welfare, but it may actually be good for society overall. Food producers & sellers benefit as their revenues will rise. Consumers will buy less food and this may be a benefit to their health, which benefits all of society.

   

People will switch to cheaper foods, which usually means less healthy. Nobody's going back to cooking from scratch - modern lifestyles just don't allow it. McDonald's will get a big boost in sales, as they did in the recession when wages dropped.

   

Thanks for raining on my parade, Poopy-head! I was looking for a silver lining. The other BIG problem this price increase will create is for poor people. Poor people spend a greater percentage of their spending on food than richer people. This is another factor in elasticity of demand. Food is even more inelastic for low-income families, so the increase in total expenditure on food is greater for poorer people.

As for the McDonald's effect you noted, that's not entirely true. People didn't switch from store bought food to Mickey D's as a result of the recession. They switched from more pricey restaurants to McDonalds. But people certainly spent less on dining-out overall. This price increase will have the same effect. While more people may eat at McDonalds, they will also eat at home more, which is certainly a healthy lifestyle choice overall.

   

Pricey restaurants have better quality food than McDonalds was my point. And again, when they eat at home it will probably be more KD and stuff they can nuke.

But, I accede to your point as well. Britons were far healthier during WWll because they had less food, and what there was was very basic stuff. They ate a lot more cabbage and beets. Not sure that will happen this time tho.

But maybe we'll start getting some food riots here too, as $8/hr wage slaves find it hard to manage. I hope so, as long as they're nice, polite, Canadian style riots.

   

rise 5% in what - a week..

   

Better quality doesn't necessarily mean healthier. Boston Pizza or Swiss Chalet aren't any healthier than Mickey D's. Nor is the typical family restaurant or even fine-dining fare any healthier; salt, butter and the deep-fat fryer.


Yup, and it'll likely be worse things than KD, like canned, salted and preserved foods. KD's a hell of a lot better choice than Chef Boyarde (unless it's 2am and you're high ).

   

You don't know how a can of SPAM can spare your life in college

   

http://www.breitbart.com/article.php?id ... _article=1

   

Not a big deal really. As someone who shops smart and eats smart, these increases never really bother me. It's all about budgeting and balance. Oh, and don't go grocery shopping when you're hungry.....

-J.

   

   

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