Monday, May 21, 2012
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Volume 161 · Issue 61 | 99¢
 

A Dose of Dan: Food prices ruin Costco dreaming

By
Democrat correspondent From page A4 | 40 Comments

Dan Francisco

I usually love visiting Costco. I don’t always get to make the monthly Costco trip with my wife, but when I do, it’s a treat for me to roam the aisles and daydream about how I could use everything I see. Naturally, we don’t buy everything—we generally buy what we need, in supersized quantities, of course—but it is fun to simply peruse and dream.

However, our last trip to Costco caused me some concern and opened my eyes to what I know is a growing issue for most Americans. For the first time, it finally sunk in for me how much the price of food is on the rise. Before you think I just crawled out from under a rock, I generally don’t have the pleasure of doing the shopping in our family. We’re not hopelessly conventional; it’s just that my wife manages the shopping process much better than I do. To be honest, those Costco trips that I tag along on usually result in much more expense than if I am not there.

But I had no idea a tub of my favorite cashews costs $16 now, up $4 in a year. And the turbo package of Costco toilet paper is now $17, up $5 from recent memory. The cold reality of cashew and toilet paper inflation made me literally start price-tag checking everything in our household during the past couple weeks.

I was startled to see that a pack of fresh deli meat from my neighboring Safeway is $10 a pound. A can of Campbell’s chicken noodle soup can be as much as a $1.89, per can, at the same store. It’s almost $2 a can to eat a soup that hasn’t changed its recipe at all in 400 years?

I know we can save money going to a discount store like WinCo, and we do at times, but it’s usually easier to visit the local Safeway down the street. Plus, we often consciously choose to keep our sales tax dollars in El Dorado County while also opting to not pay the more than $4 a gallon for gas to drive down the hill to Folsom.

Still, a survey of American consumers this month showed that shoppers are making fewer trips out, dining out less and cutting back on groceries, all to save costs amid rising food and gasoline prices. The America’s Research Group survey indicated that about a third of Americans are making fewer trips to stores, mainly due to higher gasoline prices.

Reuters reported on the survey, indicating the findings don’t bode well for the national economy that posted the smallest rise in retail sales in nine months in April. Consumer spending accounts for more than two-thirds of the U.S. economy. Furthermore, a separate Reuters report indicated that U.S. food prices are likely headed for a sustained bout of inflation moving forward.

What can we can do improve the situation? Myriad experts smarter than me have tons of solutions from biofuel reform to increased sustainability efforts. As a family, we’re doing our best to do our part, and we realize the global economy has altered the paradigm for what it means to be an American consumer. As the drama unfolds, it’s all enough to make me want to run and hide in the corner. With my cashews, of course.

Dan Francisco of El Dorado Hills owns a public relations firm that specializes in high technology businesses. His column appears biweekly.

 

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Discussion | 40 comments

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  • ElDoradoMay 21, 2011 - 9:20 am

    I am glad you mentioned the loss of sales tax in your home county. Most people who drive down the hill to shop at Costco, Sam's Club, etc., don't think about that and don't take into consideration the cost of driving.

  • John GaronMay 22, 2011 - 2:19 am

    Food prices are going up world wide. Since the introduction of the Euro, the price of a baguette in a French boulangerie has gone up 320%. What is more depressing is that eating healthy (unprocessed, fresh, organic) food is beyond the reach of average citizens in the U.S.

  • Chuck HollandMay 22, 2011 - 7:04 am

    For Dan living in EDH it's very easy and cost effective to run down to Costco and Sams, just a few miles away. For those fortunate souls living in the greater Placerville (and surrounding) area's a wise and informed shopper can do well right here in the local area. Over the years several grocery stores have set up camp, as well as a Cash and Carry over in the industrial park. Competition amongst stores is a consumer wind fall. (sorta) There's no argument, the cost of consumer goods are on the rise with no foreseeable change. That said, becoming an opportunist "local" type of shopper will bring some relief to the monthly budget, and at the same time return your sales tax dollar to our local economy. When ever possible I like to shop with a locally owned business first, a non locally owned second, both helping our local economy. To save the $4 a gallon gas i also turn to the internet. Shipping is often cheaper than a gallon of gas. (cant drive down the hill and back on less than several gallons. As a last resort, make the journey down the hill and support another counties economy so they can have the nicer roads and services. The moral of the story, SHOP LOCAL FIRST!

  • R.J. "Cowboy" CarterMay 22, 2011 - 7:38 am

    On-line is the only way to survive now-a-days...My wife orders from our local Safeway on-line..She just scrolls though everything and hits the button...Stuff is always best quality, none of our gas used up, no time wasted, delivered when you want, with no fee...Stuff shows up, it's brought in and set right on our counter..As for myself, I'm 55 yrs old and my hobby is crashing Harleys so parts off E-bay is a must..Hate running around, plus I save a lot of $$$$$..

  • Michael KobusMay 22, 2011 - 9:01 am

    Great comments Chuck Holland. And for those who don't know, the cash and carry in Diamond Springs is Straus Foods. They have tons of stuuf and their prices are very competitive. We shop there all the time.

  • Ken SteersMay 22, 2011 - 10:09 am

    Food prices have increased 17% in just 6 months. This is in line and correlated to fuel price increases at an even higher rate. Take into the equation of devaluation of our dollar and stagnant labor cost and what we have is a real quality of life style change in America. It is sad to see the conversation shift from where to shop to support tax revenues in our County to where to find the best deal to purchase food. The question must be asked, you better off today then you were before Obama became President?

  • Kirk MacKenzieMay 22, 2011 - 7:48 pm

    Mr Steers -- good question, and the data points to one inescapable conclusion... Prior to President Obama: inflation averaged 3.35% initial jobless claims were ~700k GDP growth rate averaged 1.21% Fed funds rate averaged 3.8% the stock market was dropping like a rock. Since President Obama took office: inflation rate has averaged .09% initial jobless claims have stabilized at ~400k GDP growth rate has averaged 1.54% Fed funds rate has been .25% The stock market has doubled. By any OBJECTIVE measure, we are much better off today than we were when President Obama took office. Thanks for asking.

  • James DobbynsMay 22, 2011 - 4:05 pm

    Ken........NO!

  • Ken SteersMay 22, 2011 - 7:02 pm

    LOL

  • Chuck HollandMay 23, 2011 - 6:23 am

    Ken, the answer is NO! MacKenzie, Statistic aside if you can honestly say that the American society as a whole is better off now than before Obama you need to set your glass pipe down and take a breath of fresh air. Its people and politicians like you that keep our country swirling around in the toilet bowel.

  • R.J. "Cowboy" CarterMay 23, 2011 - 6:48 am

    Numbers can be misleading, but not the inside of my fridge...No, we are not better off...

  • Ken SteersMay 23, 2011 - 6:52 am

    I have always been amazed at how many people equate the stock market as the leading indicator for the economy. It isn't. It also hasn't doubled in the last two years. My concerned is for the friends in our county that have been devastated the past two years because of the economy. I know real people friends who have been in business for decades, Contractors, Glass repair, Pest control, many more all suffering. Now fuel prices have doubled and food prices are souring.The dollar has been purposely devalued 40% from it's value ten years ago. Meaning things cost more across the board. Top that with home values are half what they were 2 years ago, it just doesn't paint a pretty picture. There is no credible person painting a rosy picture for this economys future. So the statement to Mr MacKenzie is "Hey it's the economy stupid".

  • Kirk MacKenzieMay 23, 2011 - 11:09 am

    Mr Steers -- in March of 2009 the S&P 500 hit ~660. Three weeks ago it hit ~1370. That is more than double.

  • DeeDeeMay 23, 2011 - 7:19 am

    Steers, could you possibly post something without a put down or name calling? It's very inappropriate to do this to a fellow human being for their opinion. Do you tolerate this behavior at your business? Do you allow bullying by your children at school? Are you being a bully? Read what Will wrote to you on the marijuana letter to the editor and take what he says about your attitude to heart. You can get your point and opinion across without being so mean.

  • Kirk MacKenzieMay 23, 2011 - 7:48 am

    DeeDee -- Mr Steers said nothing out of line. His response may not be based on reason, but it is decidedly not hostile, threatening, or bullying in any way.

  • DeeDeeMay 23, 2011 - 7:58 am

    Calling someone "stupid" is inappropriate. Most of his blogs have name calling and put downs in them. Read the marijuana blog again (and many others). I do not use drugs nor do I go to the pot shops, just to be clear. It's the content of his remarks that are offensive. Would he allow someone to call one of the "Casa kids" stupid? Would he allow that talk in the work place? The world is angry enough we need to keep this county that he loves so much a nicer, less hostile place to live. We have a lot of people with varying beliefs and ways of life. No one is any better than another.

  • Kirk MacKenzieMay 23, 2011 - 8:24 am

    DeeDee -- The "stupid" thing was embedded in a self-depricating quote from President Clinton. I don't take that as a personal insult; more like the right focus. I agree, we need less hostility and more reason in our debates. Trust me, Mr Steers and I have gone round and round on that topic. Since Will's admonishing comments to Mr Steers, I have seen a distinct change in his approach. Old habits die hard, but I see progress -- that's the best any of us can hope for.

  • DeeDeeMay 23, 2011 - 8:34 am

    Progress is good. I can agree with some of his opinions and then I get to the put down part and my brain shuts down. My old habit of live and let live kicks in. Hope we can all keep the positive going:)

  • Ken SteersMay 23, 2011 - 10:32 am

    I agree that the statement "it's the economy stupid" is rued and degrading. It was hailed as the Democrats mantra in 1992 by Bill Clinton. DeeDee, I don't know you. Kirk doesn't know me either. I started using the term PALS after I grew tired of Garon's use of the word TEABAGGERS. I have never seen either one of you correct him on this term. And you should be ashamed of yourselves. I also wrote a letter explaining my decision that I will act in kind and that I will debate anyone in the level that is deserved. If decorum is in order no problem. I have grown tired of the name calling by the thin skinned folks on the left. I'm also amazed at how the argument is framed. The Right is held, chiefly by it's own accord, on completely different standards. Kirk, I don't remember who Wil is. John Garon wrote that the TEABAGGERS wanted the Arizona Congresswoman to be shot. He also blamed the murders on the Right Wing. Where were you? He just call Juan Williams a very left wing commentator an expletive over and over again. How do you debate that? The only thing I ever wrote that I regret was a question to the Colonel in the heat of battle. It was worsened by the timing of his medical condition which I was unaware of. But that shouldn't be the reason to be ashamed. THAT I humbly apologize for. DeeDee, Leave the foster kids out of the equation. There is a line.

  • Oh BrotherMay 23, 2011 - 11:22 am

    Steers - go back to your opinions on the marijuana shops and then you can figure out who Wil is.

  • Ken SteersMay 23, 2011 - 12:33 pm

    Thank you, No that guy didn't affect me in the least.

  • Ken SteersMay 23, 2011 - 3:02 pm

    Kirk, As I stated the stock market isn't the leading economic indicator for the average Americans way of life but I have to question your numbers as related to the SP. You say it doubled. Wrong, the day before Obama was elected in November of 08 SP was at 1007. Today it closed at 1317. You have manipulated stats. Yes after 6 months of the Obama regime the SP dropped to 660 does he deserve applause/ No because under Bush just one year earlier SP was over 1450. When Obama took office gas was at $1.80 a gallon, unemployment was at 6.4% our National debt was 8 trillion dollars not 15. And homes in El Dorado County were worth twice as much as they are now. People are really starting to hurt. Vice President Joe Biden stated that we need to spent our way out of this recession. I ask you hows tat going? We added 1 trillion dollars to our debt and called it stimulative. What was accomplished with that fiasco? Are you better off today than 2 years ago? How show us so we all can learn.

  • Kirk MacKenzieMay 24, 2011 - 8:14 am

    Mr Steers -- there are an infinite number of false accusations you can make against me and President Obama. I refuse to play that game. The least you could do is be consistent when you bear false witness. Yes, I am better off than I was two years ago. Our second grandchild was born, our youngest child graduated from college, the value of our homes have stabilized, and we celebrated our 30th anniversary.

  • Jack MartinMay 24, 2011 - 2:03 pm

    Value of the home has stabilized??? LOL Yeah, it's stabilized at HALF of its 2006 value!!!! That's some math you got workin' there. So, unemployment is great because it's only at 9% now, when it was above 9.5% for 18 months. Gas prices are great because they just slipped below $4 gallon, when they were at about $4.22 a month ago. Funny, but along with my engineering major in college, I also got a minor in math, and I don't remember any portion labeled "creative statistics."

  • Ken SteersMay 24, 2011 - 9:01 am

    Congratulations Kirk, For some life is truly beautiful. I was discussing the movie with the same title with my son last night. A father sheltering his son from reality in a concentration camp right up to the fathers execution. One can find happiness most anywhere. There are millions of people living their lives, making the best out of it in Cuba, North Korea, Iran, China and the like. I don't want our country to slide closer to that lifestyle. So like you I have a full and happy life surrounded by my loved ones. But for most Americans I must quote the great President William Jefferson Clinton, and say "it's the economy stupid". Bearing false witness? Insulting...

  • Kirk MacKenzieMay 24, 2011 - 11:46 am

    Mr Steers -- insulting? Try being on the receiving end of your false accusations. I'll make you a deal: you stop saying things that aren't true and I'll stop calling you on it.

  • HangtownMay 24, 2011 - 9:02 am

    Food prices are are up because of China. They are a swarm of locusts that are devouring the planet. Most U.S. farmers now sell over half their crop to China before it is even harvested. The stock market is up because American corportations are getting filthy rich selling all of their products to China. I'm talking everything from John Deere earthmovers and tractors to trains from General Electric. China has become the new America, and America is becoming the new Mexico. Regardless of who is in charge, the Republicans or the Democrats, the party is over for America, get used to it.

  • Chuck HollandMay 24, 2011 - 9:18 am

    There is some merit to Hangtowns statements above. China is slowly becoming the new America. Not long from now China may be considered a world super power. I'm not sure America will become Mexico, however we are heading in that direction.

  • Ken SteersMay 24, 2011 - 11:10 am

    Hmm and the UN lead by the Illuminati is coming to take over our county. The US's largest trade partner? Canada $525.3B annually. Second largest purchaser of our goods? Mexico $163.3B. Canada's largest import to our country is energy. So it's fine for them to drill around their Polar Bears and Musk Ox but not us? We import almost all of Mexico's agriculture they export. China get's almost none. NAFTA. China has 4 times the population of the US and currently has the second largest economy in the world but only 17% the size of the US economy. China's largest purchaser of their exports? US $364.9B annually. What happens when we stop buying Chinese products? Who will they sell to? I'm kinda bumbed I didn't get the invite to any party and it's already over?

  • Ken SteersMay 24, 2011 - 2:06 pm

    Kirk, Which statement wasn't true. Your BS about the SP? Bidens remarks? The Home values? Fuel price? Unemployment rate? The Trillion dollar "STIMULUS" plan by the Dems and President? All you can do is say I'm wrong? You have a pattern. A little self introspection by you is needed my friend. Don't blame this economy on me. It sucks! Maybe not to you but most everyone else around you... You say it's chicken salad, I say its chicken %$#@

  • Kirk MacKenzieMay 24, 2011 - 7:23 pm

    Here's a couple of examples: I never said it was chicken salad. I didn't even suggest it's "good". Agnostics never tried to take away your right to pray in public. President Obama is responsible for the stock market from the time of his election, but did not start being responsible for gas prices until he was sworn in. I never blamed this economy on you. My friends know I wear industrial strength spin goggles and focus on solving problems. This economy sucks for me, too.

  • Ken SteersMay 24, 2011 - 8:29 pm

    And where have you suggested a solution? I could care less your view on faith it's not my business. How would you resolve our economic crises? I would really like to here what you have to say.

  • Kirk MacKenzieMay 25, 2011 - 11:55 am

    Mr Steers -- every letter I've written to this paper is solution oriented. You were very supportive of my letter calling for a flat tax... How would I resolve our economic crises? The most important part of answering that question is understanding that in a market based economy, these cycles fix themselves. The best thing the government can do during a bust phase is to use deficit spending to invest in the infrastructure that will enable the next boom phase be long and steady. The fact that deficits were so high during the last boom has made spending during this bust very difficult. Not all infrastructure improvements require spending tax dollars. The infrastructure I would improve: 1. Fix the tax codes, personal and corporate. Eliminate all deductions, subsidies, and incentives, and make it illegal to start adding them back in. 2. Improve education. College is too expensive and k-12 is not effective enough. 3. Resolve systemic deficits in government spending on Medicare/cade and Social Security. Remove the cap on taxes, means test benefits, improve the fight against fraud and abuse, and do whatever else is needed. 4. Invest in the physical infrastructure for moving goods and data. Our roads and bridges are in decay and over crowded; mass transit is not good enough; internet access is not good enough. 5. Improve regulatory efficacy. Bernie Madoff, BP, Lehman Bros, Freddie Mac, Fannie Mae, etc all broke laws right under the noses of regulators. That's just a start. The list of improvements is long and growing. The most fundamental change we need is for the lower chambers of state and national governments to actually represent their constituents.

  • Ken SteersMay 25, 2011 - 12:27 pm

    Fix, improve, resolve, invest, and improve. Are not solutions. As a business person I have to say that there is no value to the person that identifies there's a problem. The true merit, value is when someone has a resolution to solve a problem and then solves it. I am not trying to be snarky. I agree with the investment to infrastructure. "Shovel ready projects" is what the President promised the Trillion dollar stimulus plan was to be used for. To no avail. Other than tax increases, and the hypothetical, how would you improve regulatory efficiencies exactly?

  • Kirk MacKenzieMay 25, 2011 - 1:33 pm

    Mr Steers -- as I said, the only "solution" is for the market to right itself. If you disagree, please provide your solutions. Tax increases? Hypothetical? What are you referring to? How would I improve regulatory efficiencies? Incentivise success, punish failure. For instance, put a bounty (percentage of penalties) on finding infractions. Fire anyone who fails to find infractions that are discovered by others. Fire and prosecute anyone accepting gifts from those they regulate.

  • Ken SteersMay 25, 2011 - 2:41 pm

    "Invest" has become synonymous first with increase taxes. Now it means closer to simply spend more. But I took your word "invest" to mean increase taxes. Hypothetical was directed at you assumption to approve efficiencies. Are these bounty's focused on government entities or the private sector? Very hard to fire and prosecute government employees. I agree that the Market needs to be righted. I believe that the ship, "market" listed because of too much government interference. Example, not only thing but Fanny and Freddy. They at the very least exacerbated the inflationary housing market causing that bubble to burst. I believe that the first thing the American people need to do is realize our economy is no longer 14 trillion but 10 trillion a year. That we no longer take in 2.8 trillion a year in taxes but 2 trillion. And how can we spend 4 trillion dollars a year we we only take in 2 trillion? Could you give me an example of improvements of government regulatory efficiencies historically?

  • Kirk MacKenzieMay 25, 2011 - 3:29 pm

    Mr Steers -- I would not exclude the private sector bounty hunters. The more I think about it, it might be best to encourage that. Hard to fire and prosecute government employees for violating the law? We must do a lot of things that are hard, including that. "It's too hard" is not my idea of the American mantra. Fanny and Freddy were part of the problem. They started to wobble out of control under President Clinton and went off the tracks under President Bush's emphasis on "the ownership society". Malfeasance by the financial sector contributed a great deal to the meltdown, and individuals taking on unrealistic debt did their part. It was definitely a "team" effort. I agree, we need to be realistic about where our economy, tax revenue, and spending are now. Things will improve, but the systemmic issues must be addressed. An example of government improving regulatory efficacy? Glass-Spiegel (sp?) act. Post-prohibition ATF. It is possible. I understand "government efficiency" tends to be an oxymoron, but it is something we *must* achieve. No matter how large or small government is, whatever it does must be done in the most efficient manner possible. Just because we don't know how to do it doesn't mean it can't be done. We're Americans! We didn't know how to fly... We didn't know how to walk on the moon...

  • Ken SteersMay 25, 2011 - 5:10 pm

    I dig the Ra Ra USA USA! But I think we are in dire trouble do to our massive debt. China is stating that we will emplode economically and it scares the heck out of the Chinese. The world can not afford the USA destroying ourselves. For a decade we have fought 2 wars are they were unfunded. I told you last month that not increasing the debt limit is not neccessarially a bad thing. It now appears that it might not be an option if the world doesn't want to gives us anymore credit. I am glad no relieved to here a progressive speak of belt tightening. I feel we should force our governments to live under the same economic guidelines as every house hold in America has

  • Kirk MacKenzieMay 25, 2011 - 5:52 pm

    Progressive? Depends on who you talk to. Some of my left wing friends think I'm a right wing nazi. It just depends on the issue. I'm not much on American Exceptionalism, but we do have a knack for innovation and problem solving. That's what makes me optimistic. The debt limit must and will be raised. China is worried about us like the Japanese were 20 years ago. We have the same relationship -- if they don't loan us the money we won't be able to buy their products. I expect we'll muddle through with few significant changes, but we are very close to the end of our decades long game of kick-the-can. This next 18 months will be some of the most important in a very long time.

  • Ken SteersMay 25, 2011 - 6:16 pm

    Pray to all that is Agnostic that it's not too late. "right wing" Nazi? No such thing. Do me a big favor, comment on Hangtown's stupid statements. Since I'm not running I'll ask the Colonel to list you as one of the new Supervisors. Have a nice night

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