{"id":8073,"date":"2025-08-21T09:52:56","date_gmt":"2025-08-21T13:52:56","guid":{"rendered":"https:\/\/dahlman.online\/?p=8073"},"modified":"2025-08-21T09:52:58","modified_gmt":"2025-08-21T13:52:58","slug":"wheres-the-beef","status":"publish","type":"post","link":"https:\/\/dahlman.online\/index.php\/2025\/08\/21\/wheres-the-beef\/","title":{"rendered":"Where\u2019s the Beef"},"content":{"rendered":"\n

Beef<\/h2>\n\n\n\n

There are lots of reasons for rising costs.\u00a0\u00a0And, some of those are completely out of everyone\u2019s control.\u00a0\u00a0For example:\u00a0\u00a0beef prices are going up, because it\u2019s been a \u201cbad year\u201d for cows.\u00a0\u00a0Really, the actual number of beef cows in the United States is the lowest since 1951 (MarketWatch<\/a>).\u00a0\u00a0Sure, there are global reasons:\u00a0\u00a0climate change, drought and such.\u00a0\u00a0And we can talk about the political ramifications of that.\u00a0\u00a0But the bottom (round) line is this:\u00a0\u00a0there are fewer beef on the market, and the market is way, way bigger than it was seventy-four years ago.\u00a0\u00a0<\/p>\n\n\n\n

Supply and demand: that\u2019s the central factor in determining cost.\u00a0\u00a0If the supply is lower, and the demand is higher, then the cost (price) will go up.\u00a0\u00a0There\u2019s less beef, with a much greater demand today. So, Pataskala Kroger\u2019s is charging $19.99 a pound for a ribeye, $6.99 a pound for 80\/20 hamburger.\u00a0\u00a0\u00a0Remember how upset everyone was with the Covid meat price hike.\u00a0\u00a0My goodness, 80\/20 hamburger went up to $6.00 a pound.\u00a0\u00a0We\u2019re past that now.<\/p>\n\n\n\n

Little Blue Vans<\/h2>\n\n\n\n

Here in Pataskala, we have a \u201cmicro-market\u201d that sets the price for gasoline.\u00a0\u00a0The demand for gas is higher here than in the neighboring communities.\u00a0\u00a0That\u2019s because of an Amazon distribution center (I think there\u2019s seven giant buildings, including the \u201cFulfillment Center\u201d).\u00a0\u00a0And from one of those buildings, there\u2019s a swarm of little blue vans that go out, every day.\u00a0\u00a0<\/p>\n\n\n\n

That\u2019s Amazon fulfilling their bargain, swift product delivery to your door.\u00a0\u00a0And all of those swarming little vans have to fill up at the local gas stations, BP, Kroger, UDF, Sheets, Shell, and the rest.\u00a0\u00a0And because of that increase in \u201cdemand\u201d, the cost of gas in Pataskala is often $0.20 higher than nearby Reynoldsburg or even closer Kirkersville.\u00a0\u00a0Want to buy gas at UDF around the corner?\u00a0\u00a0There\u2019s a price to pay for the convenience.<\/p>\n\n\n\n

Eating Taxes<\/h2>\n\n\n\n

And we can look forward to the impact of the Trump Tariff policies.\u00a0\u00a0Like it or not, in the long run most businesses will find a way to distribute the new costs of tariffs (import taxes) to the consumer.\u00a0\u00a0Sure, right now, some are absorbing the tax costs to avoid the political ramifications, but that\u2019s not going to last.<\/p>\n\n\n\n

Any business has a primary goal:\u00a0\u00a0to make profit for their owners (usually the shareholders).\u00a0\u00a0That\u2019s what Capitalism is all about.\u00a0\u00a0While in the short term, reducing profits by \u201ceating\u201d the additional taxes may make good business sense, in the final analysis, the \u201cowners\u201d are in it for the money.\u00a0\u00a0The costs will get passed along to the consumer.\u00a0\u00a0Tariffs are just another consumer tax, and, as often is the case, they will have a greater impact on those with lower incomes.<\/p>\n\n\n\n

Energy<\/h2>\n\n\n\n

As for the rising cost of energy, it\u2019s a good time to be an energy company shareholder.\u00a0\u00a0The second quarter of 2025 AEP (American Electric Power) declared a $1.2 Billion profit, almost four times greater than 2024 (ABC<\/a>).\u00a0\u00a0And, as any AEP Ohio consumer can tell you, the price of electricity is going up.\u00a0\u00a0It\u2019s not just the actual cost of electricity, it\u2019s all of the associated costs:\u00a0\u00a0delivery fees, existing infrastructure upkeep, new infrastructure development.\u00a0\u00a0That does make sense, at least, around here in Columbus, Ohio.\u00a0\u00a0The whole region is expanding, and more and more power is needed to reach out to the developing industries and residences.<\/p>\n\n\n\n

And it\u2019s even more than that.\u00a0\u00a0Unlike cows, there\u2019s more energy generation going on in Central Ohio than ever.\u00a0\u00a0But the demand is increasing far beyond the existing supply.\u00a0\u00a0It\u2019s not just the stalled Intel Chip plant a few miles north of here.\u00a0\u00a0Industry is booming all through Central Ohio.\u00a0\u00a0What used to be fields in Pataskala, or Ashville, or Marengo (all twenty plus miles outside of downtown); are now solar panel factories, or an advanced military drone plant, or giant distribution centers.\u00a0\u00a0All of that means more power is needed.<\/p>\n\n\n\n

Regulation<\/h2>\n\n\n\n

Back to supply and demand:\u00a0\u00a0the demand for power is exponentially increasing, and the supply is far behind.\u00a0\u00a0So the cost of electricity by the kilowatt is going to go up.\u00a0\u00a0\u00a0<\/p>\n\n\n\n

Should the power companies \u201ceat\u201d that cost, especially with the incredible profits they\u2019re making?\u00a0\u00a0Maybe; they are publicly regulated monopolies here in Ohio.\u00a0\u00a0While I can buy a different provider for my power, it\u2019s still coming in on AEP\u2019s lines.\u00a0\u00a0The problem, of course, is the Public Utility Commission of Ohio, the \u201cregulator\u201d, is made up of five members all appointed by the energy industry friendly Governor, Mike DeWine. Some have long \u201cexperience\u201d in the energy industry.\u00a0\u00a0The foxes are in charge of the chicken coop.<\/p>\n\n\n\n

The pressure is on the consumer.\u00a0\u00a0\u00a0Because if prices go up, either consumers find ways to cut (reduce the demand) or they find more income (increase their personal supply of money).\u00a0\u00a0It\u2019s a balancing act, especially for those with \u201cfixed\u201d incomes.\u00a0\u00a0With all of the other political craziness in our world, this issue is still likely to be the most important factor in determining who gets elected.<\/p>\n\n\n\n

So while many of us, including me, think that the Trump Administration represents an existential threat to the American Democracy, it might all still come down to the price of 80\/20 hamburger, or kilowatt hours, or the price of eggs. Right now they’re $3.59 a dozen at your friendly, Pataskala Kroger\u2019s.\u00a0\u00a0By the way, Kroger made a 4% increase in profit over last year, $10.57 Billion in the first quarter of 2025.<\/p>\n\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Beef There are lots of reasons for rising costs.\u00a0\u00a0And, some of those are completely out of everyone\u2019s control.\u00a0\u00a0For example:\u00a0\u00a0beef prices are going up, because it\u2019s been a \u201cbad year\u201d for cows.\u00a0\u00a0Really, the actual number of beef cows in the United States is the lowest since 1951 (MarketWatch).\u00a0\u00a0Sure, there are global reasons:\u00a0\u00a0climate change, drought and such.\u00a0\u00a0And … Continue reading “Where\u2019s the Beef”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","om_disable_all_campaigns":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[1],"tags":[],"class_list":["post-8073","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"yoast_head":"\nWhere\u2019s the Beef : Our America - 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