IF prices regressed to the mean following weather related price spikes, your argument would have some validity. But that ain't the case now is it?
Well 45 million of them are on food stamps. I don't know the formula, but I'd image that there are federal poverty guidelines and those who meet the criteria receive the assistance. Just another example of how "the social safety net" from Medicair/Medicaid, Student Loans, Fannie Mae, foodstamps, etc, etc, etc..play a significant part in distorting the real world prices for the rest of us who are stuck somewhere in the middle...
<IMG SRC=http://research.stlouisfed.org/fred2/graph/fredgraph.png?&id=CPIUFDNS,CPILFESL&scale=Left,Left&range=Custom,Custom&cosd=2003-01-01,2003-01-01&coed=2011-06-01,2011-06-01&line_color=%2300ccff,%23ff0000&link_values=false,false&line_style=Solid,Solid&mark_type=NONE,NONE&mw=4,4&lw=1,1&ost=-99999,-99999&oet=99999,99999&mma=0,0&fml=a,a&fq=Monthly,Monthly&fam=avg,avg&fgst=lin,lin&transformation=pc1,pc1&vintage_date=2011-07-19,2011-07-19&revision_date=2011-07-19,2011-07-19> Food doesn't appear to move in lock step with the core. Either weather or worldwide demand is moving it all over the place. I still wouldn't bother with the price of food when tinkering with monetary policy.
Definitely. A much needed crash/purging in higher education would occur and tuition would be lower if not for all the gov't involvement (guaranteeing student loans and such).
Yes, most definitely. I've mentioned it on here a few times before, but I literally laughed at the absurdity back in 08-09 when the politico's did their whole song and dance about "saving" the student loan market, as it was so crucial for funding higher education costs...yada, yada...All it did was ensure these liberal hack administrators could pay themselves a million bucks a year to serve as President of the university, knock down and rebuild their campuses a few times over and gauge those naive students for their annual 6-10% tuition increase... Nothing I would love more than a few high profile private universities to fold up shop. Such arrogance with so little practical benefit.
Good point. 45 million people X an avg of $200 per month in food stamp benefits = $9 billion per month injected into the grocery aisles (or $108 billion per year) Now if you inject $108 billion dollars into ANY industry and you will see inflation in that industry. Basically 22.5% of all grocery sales comes from food stamps. Thats not including WIC either.