March 20, 1973
Page 8841
CONTROLLING FOOD PRICE INCREASES
Mr. MUSKIE. Mr. President, the time has clearly come for Government action to rescue the American family from their discouraging weekly task of shopping for food.
In the last 14 months the retail cost of a market basket of food produced on American farms has risen two-thirds what it rose in the preceding 10-year period.
Wholesale prices for farm products and processed foods have increased at an annual rate of 19.1 percent during the past 12 months; 30.8 percent during the last 6 months; 56 percent during the last 3 months; and 38.4 percent during February alone.
And there was more discouraging news today. The Cost of Living Council said the best we can hope for is that food price increases will taper off toward the end of the year, perhaps becoming steady by December.
The major component of food price increases in the last year has been meat, particularly beef and pork. For example, in 1972, all foods other than beef and pork rose 2.7 percent in price, while beef rose 9.4 percent last year and pork rose 15.8 percent.
No wonder housewives around the country are organizing meat boycotts. No wonder labor unions are threatening that they may be unable or unwilling to hold down their wage increase demands.
In the face of these protests we see a Presidential economic adviser saying "let them eat cheese."
We have a chance to act today, Mr. President. I support the amendment of the Senator from Utah (Mr. Moss) to give the American family a 90-day reprieve from rising food prices.
There are dangers inherent in any Government attempt to control prices, Mr. President. In the case of food prices, mandatory controls might cause many food products to disappear from the shelves. Food processors might engage in false labeling, trying to pass off hamburger as ground round and sirloin as filet mignon. We might be trading current complaints about food prices for new outrages.
The amendment offered by our distinguished colleague from Utah gives us the opportunity to take immediate action by freezing retail food prices. But by limiting the freeze to 90 days and installing the freeze at the retail level, we do not, commit ourselves to a politically appealing but potentially damaging courses of action which would create more problems than they solve.
Our action today will show the Nation that whether or not the President has the will to use his much-touted stick in the closet, the Congress can and will act to control outrageous food price increases.