Grocery Prices | SNAP benefits

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As expected, the SCOTUS punt worked (for SCOTUS to avoid the question on the merits).

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Punt Punting GIF by Karl's Bait & Tackle
 
nycfan said:
economistwritingeveryday.com

Grocery Price Nostalgia: 1980 Edition

Many people have nostalgia for nominal prices of the past. I’ve written about this topic in various contexts before, but the primary error in doing this is that you must also look at nominal …
economistwritingeveryday.com economistwritingeveryday.com
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“… How best to compare prices over time? Rather than “adjusting for inflation,” as is common in the popular press and by some economists, a better approach that I and other economists use is called “time prices.” Time prices show the number of hours or minutes it would take to purchase the good in two different years, using some measure of wages or income (I will use both average and median wages in this post). By looking at prices compared with wages for individual items, we can see whether each items as well as the entire basket has become more or less affordable.

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“… The basket I’ve put together (which is obviously different from the woman’s basket, but you work with the data you have) would cost $27 if you bought the package sizes BLS tracks (e.g., one pound for most of the meats and produce). In 2024, that same basket would cost $84. That’s 3 times as much! But since wages are over 4 times higher, the family is better off and groceries are, in a real sense, more affordable….”
 
nycfan said:
“… How best to compare prices over time? Rather than “adjusting for inflation,” as is common in the popular press and by some economists, a better approach that I and other economists use is called “time prices.” Time prices show the number of hours or minutes it would take to purchase the good in two different years, using some measure of wages or income (I will use both average and median wages in this post). By looking at prices compared with wages for individual items, we can see whether each items as well as the entire basket has become more or less affordable.

IMG_1011.jpeg

“… The basket I’ve put together (which is obviously different from the woman’s basket, but you work with the data you have) would cost $27 if you bought the package sizes BLS tracks (e.g., one pound for most of the meats and produce). In 2024, that same basket would cost $84. That’s 3 times as much! But since wages are over 4 times higher, the family is better off and groceries are, in a real sense, more affordable….”
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The bias here is most items in this basket are essentially whole food items. Today people typically buy way more processed food items than included in this cart. A big part of the issue is what people choose/expect to get in terms of groceries.

Purely anecdotally, my own experience was that our family pantry and other family’s pantries were positively spartan compared to all the snacks and extras people expect to have now.

Now that is obviously not true for working poor and poor, people suffering food insecurity. But it creates way more pressure deeper in the middle class.
 
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