On a recent trip to the grocery store I was shocked to find that the price of a package of Corn Skewers (those little yellow things you use to eat hot corn on the cob) had fallen to 25 cents when normally they would sell for at least 79 cents or higher. Is this a sign of deflation or simply another fallout from the irrational ethanol program? I’ve heard that up to 30% of corn production will eventually be diverted to ethanol production so that means less corn on the cob for us. It now seems clear that the ethanol subsidy program wastes more energy than it produces, harms the environment, increases food prices (especially for the poor), and now this. When will the madness end?
Source link: http://blog.mises.org/7957/crash-in-corn-skewers/
Crash in Corn Skewers
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Bonus question: Are corn cob skewers in the basket of goods that some “economists” use to “measure” inflation?
I think you may be reading more into this than really exists. However there is no doubt that the price of corn is on the rise.
This is probably exactly what you infer. The demand for corn cob skewers is down because consumption of corn on the cob is down due to rising prices. It really is a micro economic cause and effect.
It will be much more fun to see all the major banks in America fold, but alas, the Fed will not allow that cause and effect lesson in justice play out. Nevertheless, just watching people under the sword of Damocles is entertaining.
The skewers you mentioned would only be used for sweet corn. While sweet corn prices may be rising, it has nothing to do with renewable fuels. It does have everything to do with higher energy, marketing and labor costs.
Field corn, also knows as dent corn, is used for food, feed, fiber and now fuel. In many cases, the same bushel can be for one or all of these since the corn is separated into its various components.
Learn more about Food and Fuel issues at http://www.foodandfuelamerica.com
Obviously, what we need is a corn-cob-skewer price support plan. My heart aches for the millions of corn-cob-skewer manufacturing workers and their children who are suffering from this price decline.
Phase two should be a tax on ethanol and subsidies for the growing of sweet corn (hmmm, good!).
Problem solved.
I think Yancey is on to something here. My post was done tongue in check so to speak, but I did get a great deal and my old skewers are either lost or falling apart. .
I hate to take a tongue-in-cheek article and talk about it in a more serious light, because it makes me look like I didn’t get the point and that I’m an idiot.
But they come in a bag? Just how much corn do you plan on skewering and eating at once?
Fephisto,
When I was growing up we had a set of 8 for a family of 4. 2 per cob (I think you can get away with 1 if your skewer is well designed). These skewers were about an inch.
Mark, are you sure you didn’t just catch them on sale? Maybe they’re clearing the old ones to make room for the new ones.
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Hm. Without knowing the quantities of skewers being made and sold, and how that’s changed , the price alone doesn’t tell us much.
I suspect ( but cant prove) that worldwide production of these skewers is bigger than its ever been before, and that the offending skewers were made in China where productivity is very high. At least in comparison to elsewhere.
It follows that these things will of course be offered at a lower price than ever before. Rejoice in the wealth it releases in your hands!
What ever may be the case with corn skewers, the discussion shows that confusion has been introduced into the price system as no one can clearly interpret what the lower price means.
Check back in July!
wow, interesting, something actually goes down.
Interesting indeed, you wouldn’t expect the price of it to deflate.
Probably the demand.
I think you may be reading more into this than really exists. However there is no doubt that the price of corn is on the rise.
Interesting indeed, you wouldn’t expect the price of it to deflate.
Probably the demand.
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