Joe Biden tried to lower record high prices on meat with additional government spending. This week, he had a virtual meeting with independent ranchers and farmers to lay out initiatives to lower food prices by boosting competition in the meat industry.
During the meeting, Pres. Biden said he is planning to earmark $1 billion in American Rescue Plan money to grow processing capacity for all independent meat companies. The sum includes $275 million for capital support and $100 million for job training and development. Additionally, Joe Biden will also tighten the rules governing the Product of USA meat labels.
The move is Pres. Biden’s latest effort to reduce prices for Americans at grocery stores as inflation has hit record highs not seen in decades. The administration claims large businesses have stifled competition raising inflation and higher costs of meats and everyday items people need.
“This reflects a market that is being extorted by a lack of competition,” Biden said. “I have said it before, and I will say it again: capitalism when there isn’t any competition isn’t capitalism; its exploitation. That is what we’re seeing within the meat and poultry industry.”
However, Pres. Biden said he has a problem with the corporate middlemen rather than record inflation that has made prices shoot up. The U.S. price index increased 6.8 percent in Nov., which is the highest in almost 4 decades.
Despite this, Joe Biden somehow put the blame on 45th Pres. Donald Trump despite Trump’s best efforts to fight for ranchers and farmers in rural America.
“For example, the Dept. of Agriculture is changing the rules of the Packers and Stockyards Act, which was a law in the 1920s that farmers needed at that time, and they still need it to help protect ranchers and farmers from abuse by processors,” Biden said. “The last administration has weakened that law, making it where it’s possible for the abuse that we are seeing now.”
Additionally, meat industry critics blamed Joe Biden for high meat prices rather than the meat processors while claiming the American Rescue Plan put $1.9 trillion back into the economy without new earnings streams. This in return, devalued the United States dollar.
Furthermore, meatpacking companies and industry groups stressed the Biden administration’s steps will not help American consumers, while also claiming the promised new government spending plans to grow independent meat processing will come too late to reduce prices for producers and consumers. The market has already started balancing itself between demand and supply, evening out price increases.
Author: Steven Sinclaire