The New York Times is considered a newspaper of record. That is to say it’s editorial staff is considered professional and authoritative. Consider that point when you read this story:
Avian flu, which first appeared in the United States in December, has devastated the nation’s turkey and laying hen flocks, though it seems to be abating with the arrival of higher temperatures, as specialists had predicted. But barns still stand idle, as egg and turkey producers weigh the risks that the outbreak will pick up again in the fall.
The U.S.D.A. predicts that egg production this year will be down by roughly 341 million dozen, or about 4 percent from last year, Mr. Shagam said. “We do expect to see prices come down from this high but still be at record highs for the year,” he said.
What does that mean? An average wholesale price of $1.60 to $1.66 for a dozen New York large eggs, which would break the record high of $1.42 a dozen set in 2014.
No run on the grocery store has been apparent, at least not by consumers.
To summarize the article, avian flu has knocked back egg production so prices have increased and since prices have increased consumer demand has gone down. What really gets me about this article isn’t the fact that it’s pointing out the bloody obvious or that it took so many words to do so. No, what really gets me is that the author treats this like some kind of goddamn revelation. Who would have ever though that increasing prices decreases demand? This will change everything!
Considering the New York Times gives Paul Krugman space to write his seemingly unending flow of economic bullshit I’m not surprised its other staff members are equally ignorant of economics. I also understand that we’ve been told by the state that the only way to deal with shortages are price controls coupled with rationing. Allowing markets to shake themselves out has been labeled a pipe dream that evil anarchists say to scare the statists into disobeying their masters. But when staff members at your newspaper of record believe this very basic economic principle is even newsworthy then you really have to shake your head at the sorry state of economic knowledge in this country.