Our anxiety about the economy is spiking — along with egg prices
The rise in egg prices unnerves consumers and makes us question the wider economic environment
“… The price of eggs has risen by 50% over the past year. The average cost of a dozen Grade A large eggs hovers at $4.95, up 240% from $1.46 five years ago. To put that in context: annual inflation hit 3% in January. We grudgingly accept price hikes in real estate. But eggs? Not so much.
… Eggs are an “inelastic” commodity: as prices rise customers don’t necessarily stop buying them; there are precious few alternatives. Economist
Jason Lusk says a 1% rise in price only reduces demand by 0.15% and, if the supply falls by 1%, prices will rise by about 6.67%.
… A shortage of eggs “serves as what psychologists call a ‘heuristic,’ a mental shortcut that shapes our broader perceptions,” he wrote recently. “When something as mundane as eggs becomes difficult to obtain, it triggers a feeling that something is fundamentally not working.”
… Shortages hurt, whether it’s
baby formula in 2022 or eggs in 2025.
“This, in turn, feeds into larger anxieties about inflation, the economy, the cost of living, and supply-chain vulnerabilities,” Harrison, the economist, says. “It reinforces the growing sentiment that we are living in precarious times.”
“The egg shortage won’t last forever, but it is a symptom of a larger problem; one that will only become more pressing in the years ahead,” he adds.
“Climate change, resource depletion, and shifting economic structures will make certain commodities more volatile.”
“The question is not just how we react to these shortages, but how we prepare for them,” Harrison says.
“There is no easy fix. But a meaningful first step would be acknowledging that we have been living in an era of extraordinary abundance; one that may not be sustainable.” …”