If we are to be totally honest, the price of foods are controlled by the commodity market. It is there where bidding on products take place. So what happened?<quoted text>
I think the outrage would make a bit more sense were the government not already indelibly linked to the prices and market for foodstuffs in the US market. Simply incredible amounts of public funds are spent to support agricultural industries which result in some pretty unique trends. The corn syrup with seems to be in most everything served in the US flows directly through the treasury via subsidies. While I agree that a more natural, hands off approach might be more elegant, pretending that controlling the price of high risk foods through taxation is an outrage while ignoring the fat that the current prices are set through subsidies against many of our best interests hardly seems intellectually honest.
Two things: first off, we started to burn up our food supply to satisfy environmentalists. Forget the fact that ethanol is actually dirtier to make, provides less milage, and destroys engines more quickly than gasoline, it's the though that counts.
When producers use corn to make into ethanol, that drives the price of corn up. Okay, no problem, so the price of corn is up, why is everything else up too? Farmers who used to grow wheat or soybeans dropped their crop for the higher selling corn. Now we have a shortage of wheat and soybeans and their price goes up. In fact, all grains go up.
So now we have a shortage of grains and the price of everything is up. But wait? What about meat? Quality hogs and cattle are fed grain products. Same goes with chickens.
Next we have the weakening of the dollar. Commodities are sold worldwide and have a price of their own. It now takes more US dollars to buy products on the market which drives the cost up. It's the same way with your gasoline.
Last but not least is subsidies, but subsidies were always there. They don't have that much of an impact on our food prices.