EDITORIAL
BY DHIREN SHAH
Hello Readers,
Kamala Harris is thinking to put a ban on price gouging for food and groceries. However, the cost of groceries and food depend upon transportation, higher wages of the employees (as the minimum wage has increased drastically in many states in past five years) etc.
In New Jersey, the minimum wage in 2014 was $8.25, 2019 – $10.00 and 2024 – $15.13. The majority of the small shops cannot afford the minimum wage, so the owners and/or managers have to work harder to fill in the gaps with fewer employees. Still, the cost of wages and state and federal taxes goes indirectly to the cost of food and groceries. Dollar stores used to be a $1; now, they are $1.25, but many items are sold for $5 in the store. Those prices are at that level for the stores to survive. Dollar Tree announced in March that there would be a maximum price of $7 for special items while the regular price will be $1.50.
Not long ago, Dollar Tree acquired Family Dollar at the price of $8.5 billion according to nj.com. The price for groceries has gone up about 6.8% in the past 12 months. Finally, who pays for these price and wage increases? The consumers. The distribution of more and more food stamps also will raise the prices.
According to SNAP, the food stamp distribution in 2023 was 41.9 million people in 22.2 million households receiving benefits. In 1974, 12.9 million people, or 6.0% of the total U.S. population, received such benefits. In 2023, this works out to $3,007 in gross monthly income and $2,313 in net monthly income. At the same time, the SNAP program has different levels of food plans. The highest food plan is the Thrifty Food Plan. That Plan is made up of specific amounts of various food categories – such as dark green vegetables, whole fruit and poultry – that together comprise a practical, cost-effective diet that meets dietary guidance. However, due to inflow of migrants, that may increase the cost of food distribution.
In 2023 total food outlays were $209.3 billion. There are many programs that the politicians are creating and spending money on to show they are working for the people. However, they usually already prepare their team of employees made up of their friends and family members to work on that program. It is the way they create a strong team at the expense of taxpayer money in my opinion. The 2024 budget will be astronomical, as more and more migrants may be allowed to join these food programs.
After withdrawing his name from the presidential race, Joe Biden appeared with his Vice President and the Democratic Party’s presidential candidate Kamala Harris on August 15, at Maryland, next state to Delaware, Biden’s home state. He did not speak much, but it seemed like he was alert. Harris and Biden both spoke about lowering drug costs as their main agenda.
However, what has been done in the past three years about the drug costs, they must answer for their side of the story. His plan consists of negotiations with drug companies to save $6 billion. It does not seem like a solid plan. Drug companies are masters in changing the cost despite the law. Also, negotiations could have been made in the past three and a half years.
President Joe Biden’s Executive Order on July 9 included various steps toward making good on campaign promises to take on pharmaceutical companies by allowing the importation of prescription drugs and curbing the high cost of medicines. At the end of his term, for the election promise, he negotiated with the drug companies.
I am not totally impressed with the proposal promise. This should have been done a long time ago. Most of the drugs are coming from India to the pharmacies. India has 10% of the cost of drugs here in the U.S. Why don’t they allow drugs for the consumer to import directly from any country with their own risk?
Harris said that she will have her first press conference after the Democratic National Convention. Trump has agreed to debate Harris on Sept. 10th, but Harris has not agreed to two debates Trump offered on Sept. 4th and Sept. 25th. The Vice Presidential candidates have agreed to debate on Oct. 1. Presidential candidates should have at least three debates for the sake of the voters.
Have a wonderful week. I’ll talk to you next week.
