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The Midland Journal
Rising Sun, Cecil County, Maryland
What is this article about?
Bread prices rose 5% over two years to 8.9 cents/loaf on Aug. 17, 1937, highest in seven years, per D.E. Montgomery of AAA. Study of 51 cities shows labor costs explain little; added $50M/year to food bills, mostly not benefiting workers or farmers.
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Average bread prices have gone up 5 per cent in the last two years, and on Aug. 17, 1937, the average cost was 8.9 cents a loaf, the highest seven years, according to D. E. Montgomery, Consumers' Counsel for the Adjustment Administration.
The findings are based on a study of bread prices in fifty-one cities.
The increased labor costs during the period appear to account for only 2½ per cent rise.
Wholesale prices of white bread ingredients have actually gone down in the past two years, except for a few months during the summer of 1936, and the processing tax cost of ½ cent a loaf has been removed, Mr. Montgomery points out.
This rise in the cost of bread is estimated to have added $50,000,000 a year to the consumers' food bill.
It is argued that this increase would be socially justified if it went into the pockets of laborers and farmers in wages and higher wheat prices.
The AAA economist says, however, that only half went to labor and none to farmers—a fact which would seem to call for action of either the consumers or the Government, or both.
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Domestic News Details
Event Date
Aug. 17, 1937
Key Persons
Outcome
rise in bread cost added $50,000,000 a year to consumers' food bill; only half of increase went to labor, none to farmers.
Event Details
Average bread prices increased 5 per cent in the last two years, reaching 8.9 cents a loaf on Aug. 17, 1937, the highest in seven years, based on study of fifty-one cities. Increased labor costs account for only 2½ per cent rise; wholesale prices of ingredients decreased except briefly in summer 1936; processing tax of ½ cent a loaf removed. Calls for action by consumers or government.