The US Chamber of Commerce warned that the initiative could push prices even higher, after the White House said it would dedicate $1 billion to increase competition.
The meat processing industry has come under increased scrutiny after consumer prices for meat.
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The American Rescue Plan will allocate $1 billion to assist independent meat processing companies, which the Biden Administration says are hurting consumers, producers, and our economy by being dominated by corporations.
$375 million in grants for independent processing plant projects, $275 million in loan assistance, $100 million in workforce development and $100 million to reduce overtime fees for government food safety inspections are included in the plan.
The Department of Justice and the Department of Agriculture will work together to speed up reporting of antitrust complaints.
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Consumer prices rose 6.9% in the 12 months ending in November, the Bureau of Labor Statistics said. The index for meats, poultry, fish, and eggs jumped 12.8% in that period, as the largest driver of this record inflation. The price increases were caused by labor shortages and supply chain problems. The American beef, chicken, and pork industries have four large processors that control more than 50% of the market. During his first year in office, President Joe Biden signed an executive order to promote competition across the economy.
The quote is crucial.
In too many industries, a handful of giant companies dominate the market, Biden said during a Monday meeting with independent farmers and ranchers. Too often, they use their power to squeeze out smaller competitors and stifle new entrepreneurs, making our economy less dynamic, giving themselves free rein to raise prices, reduce options for consumers or exploit workers. The price of meat is a textbook example.
Chief critic.
Neil Bradley, executive vice president and chief policy officer of the U.S. Chamber of Commerce, denounced the White House's policies as "misguided" in a statement. Bradley said that such government intervention would likely push prices even higher.
The White House wants to increase competition in the meat-processing industry.
The prices of meat are rising at the fastest rate in 30 years.
Inflation hit a 40-year high in November.
