Here’s Why Your Breakfast Just Got Way More Expensive
You’re going to have to start shelling out a lot more for your eggs.
U.S. farmers in 20 states have killed more than 40 million chickens and turkeys since December, including about a third of the commercial, egg-laying birds in Iowa, as the United States experiences its biggest-ever bird flu outbreak.
The diminishing poultry population has led to an egg supply crunch, pushing prices some 85 percent higher, according to The Wall Street Journal. Economists say prices could spike another 20 to 30 percent.
The outbreak comes just as eggs are returning to favor with consumers after years of fighting perceptions that they’re unhealthy. In 2013, Americans consumers munched on more than 250 eggs per capita, the highest rate in six years.
Related: Minnesotans in contact with avian flu birds getting preventive drugs
Last year, the U.S. poultry industry produced nearly 100 billion eggs. USDA associate deputy administrator Jack Shere told the Associated Press that the avian flu could cost the U.S. taxpayers about $400 million this year.
Big Food companies are already considering changes to their menus and their pricing following the shortage. McDonald’s, Panera Bread, and General Mills, The New York Times reports.
The last serious avian flu outbreak in the United States occurred in 1983 and led to the killing of 17 million chickens, turkey, and guinea fowl in Pennsylvania and Virginia. While avian flu spread to humans in Asia in 2003, the Centers for Disease Control considers the risk to people from the current strain to be low.
Chart of the Day: Boosting Corporate Tax Revenues
The leading candidates for the Democratic presidential nomination have all proposed increasing taxes on corporations, including raising income tax rates to levels ranging from 25% to 35%, up from the current 21% imposed by the Republican tax cuts in 2017. With Bernie Sanders leading the way at $3.9 trillion, here’s how much revenue the higher proposed corporate taxes, along with additional proposed surtaxes and reduced tax breaks, would generate over a decade, according to calculations by the right-leaning Tax Foundation, highlighted Wednesday by Bloomberg News.
Chart of the Day: Discretionary Spending Droops
The federal government’s total non-defense discretionary spending – which covers everything from education and national parks to veterans’ medical care and low-income housing assistance – equals 3.2% of GDP in 2020, near historic lows going back to 1962, according to an analysis this week from the Center on Budget and Policy Priorities.
Chart of the Week: Trump Adds $4.7 Trillion in Debt
The Committee for a Responsible Federal Budget estimated this week that President Trump has now signed legislation that will add a total of $4.7 trillion to the national debt between 2017 and 2029. Tax cuts and spending increases account for similar portions of the projected increase, though if the individual tax cuts in the 2017 Republican overhaul are extended beyond their current expiration date at the end of 2025, they would add another $1 trillion in debt through 2029.
Chart of the Day: The Long Decline in Interest Rates
Are interest rates destined to move higher, increasing the cost of private and public debt? While many experts believe that higher rates are all but inevitable, historian Paul Schmelzing argues that today’s low-interest environment is consistent with a long-term trend stretching back 600 years.
The chart “shows a clear historical downtrend, with rates falling about 1% every 60 years to near zero today,” says Bloomberg’s Aaron Brown. “Rates do tend to revert to a mean, but that mean seems to be declining.”
Chart of the Day: Drug Price Plans Compared
Lawmakers are considering three separate bills that are intended to reduce the cost of prescription drugs. Here’s an overview of the proposals, from a series of charts produced by the Kaiser Family Foundation this week. An interesting detail highlighted in another chart: 88% of voters – including 92% of Democrats and 85% of Republicans – want to give the government the power to negotiate prices with drug companies.
