Saturday, February 1, 2014

The Price of Eggs in America

Dear Mr. Kettle:

I returned from my weekly grocery shopping excursion having found what I thought was a small treasure. I’d purchased a container of eggs for a mere $2. It was not just a dozen eggs but, rather, eighteen, grade-A large eggs. They weren’t advertised as being on sale and, once I’d gotten home and taken a moment to reflect on it, that price nagged at me. A horrible thought came to me and ran to the fridge to check the expiration date, only to find that I had weeks to go before they went ripe. Still, I have a suspicious nature. I remember an experiment that I could perform which would prove unquestioningly that my purchase was indeed “farm fresh.”  I carefully place all eighteen eggs in a pot of water and, with more than a little relief, watched them all settle to the bottom. Carefully drying them and placing them back into their carton, I could not shake the feeling that something was not quite right with this purchase.

Being just a little infatuated with numbers – and eggs – I decided I need to know what the going street price was for a dozen eggs. Knowing of only one all-encompassing source for such information, I turned to the United States Department of Labor’s Bureau of Labor and Statistics for the answer. Sixty seconds later, I was more than a little crestfallen to discover that as recently as last month, the median price for a dozen grade-A large eggs was, in fact, $2. There was no conspiracy to peddle inferior eggs off on me as seemingly normal eggs at an incredible great price. There was no terrorist plot to lull me into a pattern of eggtravagance. Then the synapses in my head finished chugging, a puff of smoke escaped my left ear and the “ah-ha” light click on over my head. I’d failed to normalize my data. I wasn’t doing an apple to apple comparison – I mean egg to egg comparison. You see my $2 purchase meant that I’d actually paid only $1.33 per dozen. To put it in the colloquialism of the original 19th century Sherlock Holmes, the game was afoot.

I pulled the data from BLS on the historical price of eggs, going back twenty-fives and found some disturbing patterns. The first thing I noted was that once I averaged out the price increases into a median annual percentage increase, that percentage rate of 4.17% came within one tenth of one percent of matching the median annual Consumer Price Index (CPI) for the same period - a number also maintained by the Bureau of Labor and Statistics. While not a particularly earth-shattering revelation in itself, I did feel as if I’d just walked up to a craps table for the first time in my life and rolled a natural on the come-out. The hackles rose on my neck, so I looked a little deeper.

My second revelation came when I looked at the standard deviation on the price of the same dozen eggs over the previous twelve months. You see my fortuitous purchase of a dozen eggs for a mere $1.33 was eleven standard deviations below the government recorded norm for the previous year. Again, to draw upon an analogy, my fortuitous purchase was like tripping through the desert to discover a collection of pyramids, except that the desert was not near Cairo, Egypt, but rather Alice, Australia. That phenomenal price was simply out of place. Not quite as fantastic as finding water on the Moon, but a distant second. Many things could explain the price spread, until you start looking too closely to the numbers. Perhaps the top 1% of wage earners in this country do spend obscene sums for the eggs in some perverse exercise in trickle-down economics, but I have difficulty with that image.

As such, lots of fantastic possibilities began running through my mind, in part because the Internet had gone down by this time, there was nothing worth watching on television and my e-reader needed to be re-charged. I began imagining a Jetson’s style chicken egg operation, where George J. Jetson himself oversaw an army of Rosie Robots efficiently harvesting eggs from broods of contented chickens. I envisioned GMO chickens imbued with opposable thumbs and sufficient intellect that they collected their eggs under the direction of a benevolent chicken wrangler, who guided their actions telepathically, like a scene from a Stephen King novel.

Then my neural synapses clicked again, a puff of smoke emerged from my right ear and all became clear. It was an alien invasion, a conspiracy of national – no, international – proportion, meant to lull me and every other egg-loving, red-blooded American into a false sense of complacency. I’d been duped!

We’ve known for some time that the backbone of American agriculture is not our ingenuity or even the rugged individualism of the American family farmer. While these are important legs on which the American dinner table is supported, they’re balanced unequivocally by a labor force that we openly hate and secretly love. That labor force performs those requisite tasks needed to get that egg from beneath the chicken to atop the table…and some of those tasks are downright disagreeable. In fact, if more of us voting Americans had to endure the work conditions necessary to bring us a dozen American produced eggs from red-blooded, American chickens at the unheard of price of $1.33 per dozen there would be blood. While that sounds melodramatic, we’ve conveniently forgotten that the rights and privileges we enjoy as workers in this country were written in the blood of those who came before us. Little is spoken in American history classes about the Homestead Strike, of 1892, the Battle of Blair Mountain, in 1921, or a hundred other such events in our history that have led to mundane privileges, which we now take for granted, such as the forty-hour work week, child labor laws, and work safety standards, to name a few. These were minor civil wars, pitting American against one another, as one small group sought not equality, but dignity and opportunity in the work they performed.

Fortunately, we’ve devised a solution for avoiding a repeat of those bloody chapters, while still providing us with agricultural products at fantastically affordable prices. We’ve development a second-class workforce, invisible and silent, stripped of as many rights and privileges as we can justify, while still calling ourselves civilized. It’s a beautiful system. If these people care not for the squalid conditions, abysmal pay and abject public we offer them, we simply replace them with the next batch refuges seeking to escape even more dire conditions from where they came. We grumble loudly and publicly at the scourge that we call our illegal immigration problem. Our politicians jockey for position on one side of the argument or the other, offering to find a solution, while never quite getting around to doing so. Meanwhile, we blithely and ignorantly stand in line at the grocer buying eggs, whose sale price is statistically improbable, whether that be $1.33 or $2 per dozen.

I have no solutions or directions to offer here. The simple fact is that should all those angry Americans seeking an immediate answer to our illegal immigration problem were granted their wish they’d find it a bitter sweet victory. If the estimated 12 million illegal aliens were rounded up and deported overnight, we would face a crisis of epic proportion. In the food industry alone there would be chaos. No one would be there to collect my eggs! Certainly not at the wages and work conditions that currently exist.

Chicken ranchers would eventually find someone to fill that void. However, if those people have a voice, know their rights, and are willing stand up for them, there will be blood. At the very least, we’ll likely see is a return to economic turmoil like that seen in the early 1970’s, when Federal intervention was necessary to control inflation and forestall widespread, economically induced famine within our own borders. What’s more, we won’t be getting our eggs for the phenomenal price of a mere $2 per dozen, nor will the price increases stay so neatly in lockstep with inflation overall. My egg fantasy would be over.

Sincerely,


Mr. Pot

No comments:

Post a Comment