Robert Reich Is Wrong: ‘Corporate Greed’ Isn’t To Blame for Egg Prices
Some laws of economics are ironclad. Competition is a natural regulator of economic activity. When demand outweighs supply, prices will rise. And when prices rise, a prominent progressive will blame it on corporate greed.
For much of 2022, the price of eggs rose dramatically, according to the Federal Reserve Bank of St. Louis. Even as inflation cooled later in the year, the per-dozen price of eggs exploded, from less than $2 in January to $3.11 by August before cracking $4.25 in December.
The situation is so severe that smugglers see it as an opportunity. U.S. Customers and Border Protection (CBP) reportedly saw a 108 percent increase in seized eggs and poultry products from October to December. Jennifer De La O, director of field operations at CBP’s San Diego Field Office, warned that “uncooked eggs are prohibited entry from Mexico into the U.S. Failure to declare agriculture items can result in penalties of up to $10,000.”
Over the weekend, Robert Reich, a Berkeley professor of public policy who served as secretary of labor under President Bill Clinton, tweeted his explanation for the price spike: “Corporate greed.”
“Cal-Maine, the largest egg producer in the US, is raking record profits,” Reich said, “$198 million in its latest quarter. That’s a 65% increase from a year ago.“
Egg prices are up 60%. That’s absurd. People are paying up upwards of $6 and $7 for a dozen eggs.
Article from Reason.com