08 February 2013

Recession Medicine

A Louisiana supermarket was forced to yank its low-cost milk special after state auditors objected to the price.
Fresh Markets in Perkins Rowe was selling milk for $2.99 a gallon as part of a weekly promotion deal, but Louisiana requires that retailer markups be at least 6 percent above invoice and shipping costs, The Advocate reports.

Higher milk prices are good for combatting a recessions because, if nothing else, they ensure that workers will have higher aggregate wages, which will enable them to purchase higher-priced milk.