Economics of Bacon and Natural Disasters

by: the Common Constitutionalist

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You may have noticed that the price of bacon is off the charts. I know I have. It appears to have basically doubled in the last months. Why?

It’s simple – supply and demand. Over the last few year demand for everything bacon has skyrocketed. It seems bacon is in everything. There is Maple Bacon ice cream for dogs. There are bacon cream Oreos, bacon flavored gumballs, bacon mayonnaise, bacon toothpaste and Amazon sells Lester’s bacon soda. I love bacon, but ick!

In February, Business Insider explained the effect the demand for bacon has had on the industry.

The country’s supply of frozen pork belly — the meat used to make bacon — fell from 53.4 million pounds in December 2015 to 17.8 million pounds in December 2016. That’s the lowest level the nation’s pork reserve has been at since 1957, according to US Department of Agriculture data. “Today’s pig farmers are setting historic records by producing more pigs than ever,” Rich Deaton, the president of the Ohio Pork Council, said in a statement highlighting the data. “Yet our reserves are still depleting.”

What we’re witnessing are naturally occurring market forces at work – basic economics – supply and demand, and why the cost of bacon has increased so much. As demand outstrips supply, prices naturally increase. If it didn’t, soon there would be no supply left. The free market, left to its own devices, devoid of government meddling, will then re-balance itself, allowing supply to catch up with demand. Bacon will then return to more reasonable prices.

Put it this way. You go to store to purchase something. For this scenario, it doesn’t matter what it is. Luckily, you happen upon a store offering the product at 50% off. Why? read more

Video Podcast – Pastor for Reproductive Rights – Price Gouging Can be Good

by: the Common Constitutionalist

A Female Methodist Reverend claims she was “moved by Scripture” to become an abortion advocate. She says her interpretation of the Bible called her to join the pro-abortion movement.

No one likes price-gouging – especially during times of exceptional need, as in the case of Hurricane victims. I argue that these pirates who jack up prices of goods and services actually perform a needed service to the desperate evacuees. read more