Moneybox: Turkeynomics

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Moneybox Turkeynomics Why has the price of turkey been rising? By Matthew Yglesias Posted Tuesday, Nov 22, 2011, at 11:12 PM ET In case dealing with your extended family isn't enough of a hassle, here's more bad news: As part of America's general economic malaise, a Thanksgiving turkey is growing more expensive. In fact, we appear to have suffered a Lost Decade of Turkey. Economists have long known that the public assumes inflation is higher than it really is. This is especially true when it comes to food, as we bitterly remember price hikes but forget times when pasta and milk and steak became more affordable. (Israel, for example, was shaken this summer by enormous protests over the rising price of cottage cheese.) In the case of turkey, the gripers are justified: The birds have been getting more expensive for years. November price data aren't complete yet, and personal income data for October aren't available, but we can compare Septembers to get a sense of things. Back in September 2001, annual per capita disposable income was $27,147, and a whole turkey cost $1.162 per pound. (None of these numbers has been adjusted for inflation, so as to isolate turkey inflation from larger price trends.) At this price, the average American could have bought 23,000 pounds of frozen turkey if for some crazy reason she wanted to. Nominal turkey prices bounced around for the next several years while per-capita disposable income increased, meaning that by September 2006, your hypothetical glutton could afford more than 29,000 pounds of frozen turkey. The National Bureau of Economic ... To continue reading, click here. Join the Fray: our reader discussion forum What did you think of this article? POST A MESSAGE | READ MESSAGES Also In Slate Why Tiny Thanksgiving Dinners Are Better Than Huge Ones Exuberant, Sunny, Not a Bit Snarky: The Joy of the New Muppets Movie GOP Intransigence Could Hand the Left a Huge Budget Win	Advertisement
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