"The Dallas Feds’ report came out recently and is showing some disturbing information on the price of sausages. The survey said not only that there has been “modest growth” in the dinner sausage category, but that this is also a sign of the economy weakening." -- Elias Yuasa, 8th Grade
The Dallas Federal Reserve (Dallas Feds’) report came out recently and is showing some disturbing information on the price of sausages. The survey said not only that there has been “modest growth” in the dinner sausage category, but that this is also a sign of the economy weakening. While inflation has dropped dramatically since 2022, there still appears to be an abundance of American citizens worrying about rising prices and recession. With this new information about sausages, they might have a point.
Now you may be wondering why increased sausage prices are so scary. Well it’s a bit complicated, but the underlying point is that, as the Dallas Feds say, the dinner sausage category “tends to grow when the economy weakens.” So is our economy weakening? That’s where things start to get tricky because the numbers say no, but the sausages say yes.
You see, the reason the Dallas Feds say the economy weakens when sausage prices grow is because of supply and demand. While that might sound weird, the thing is that sausage is the cheapest protein; ribs and brisket will often cost upwards of ten dollars in most cases, but sausages have a very low price due to the fact that they’re the grinded up parts of animals shoved into a tube. Because of this very low demand, sausages are usually cheap, that is until people can’t afford other meats.
When people don’t have the money to buy more expensive meats they turn to dinner sausages because they’re usually inexpensive. This increases the demand for sausages and, with the supply staying the same, it leads to more expensive sausages. So when there’s an uptick in sausage prices it means people are having to stretch their money, implying that the economy is weak.
Now you may be wondering why increased sausage prices are so scary. Well it’s a bit complicated, but the underlying point is that, as the Dallas Feds say, the dinner sausage category “tends to grow when the economy weakens.” So is our economy weakening? That’s where things start to get tricky because the numbers say no, but the sausages say yes.
You see, the reason the Dallas Feds say the economy weakens when sausage prices grow is because of supply and demand. While that might sound weird, the thing is that sausage is the cheapest protein; ribs and brisket will often cost upwards of ten dollars in most cases, but sausages have a very low price due to the fact that they’re the grinded up parts of animals shoved into a tube. Because of this very low demand, sausages are usually cheap, that is until people can’t afford other meats.
When people don’t have the money to buy more expensive meats they turn to dinner sausages because they’re usually inexpensive. This increases the demand for sausages and, with the supply staying the same, it leads to more expensive sausages. So when there’s an uptick in sausage prices it means people are having to stretch their money, implying that the economy is weak.
So is the American economy weak? Well sausages aren’t the only sign of a weakening economy. According to CNBC, layoffs in August were the highest they’ve been in 15 years. Plus, as Business Insider states, “Americans are increasingly focusing on value, according to recent earnings reports from some of the largest consumer-facing companies including McDonald's and Amazon.” All of this puts our economy in a horrible state.
However some people like Andrew Pierce, a local Californian says, “The economy in general feels strong in my opinion.” When you look at the numbers he’s probably right: according to Business Insider interest rates (the cost of borrowing money) are under 3% for the first time since 2021, and if you look at the stock markets it’s a very healthy year. So is our economy weak or is it maybe the best it’s ever been? Who do we trust, the professionals or the sausages?
However some people like Andrew Pierce, a local Californian says, “The economy in general feels strong in my opinion.” When you look at the numbers he’s probably right: according to Business Insider interest rates (the cost of borrowing money) are under 3% for the first time since 2021, and if you look at the stock markets it’s a very healthy year. So is our economy weak or is it maybe the best it’s ever been? Who do we trust, the professionals or the sausages?
