Prominent economic commentator Noah Smith sparked debate over food affordability solutions, mocking suggested alternatives to eggs amid soaring prices.
What Happened: “Trump’s economy: Who needs eggs when you can eat chickpeas instead,” Smith wrote on X on Sunday, responding to Fox News coverage recommending alternative protein sources as egg prices hit record levels.
Smith’s commentary targeted an article suggesting consumers turn to bananas and chickpeas for breakfast alternatives, as egg prices reached an unprecedented $4.95 per dozen in January. The suggestion comes as retailers nationwide grapple with supply shortages and mounting consumer frustration.
The price surge stems from a devastating two-year bird flu outbreak that killed approximately 17.2 million egg-laying hens in November and December alone. The U.S. Department of Agriculture projects another 20.3% price increase throughout 2025, compounding concerns about food inflation.
Brian Albrecht, Chief Economist at the International Center for Law & Economics, attributed the rising egg prices primarily to a supply shock. “Lots seem to think monopoly power exacerbated the shock. It's taken for granted that's how it works,” he wrote on Tuesday.
Scott Lincicome, Vice President for Economics and Trade at Duke Law School, dismissed claims of “greedflation” and “price gouging,” arguing that consumer demand — not sellers — is driving egg prices.
Citing a Wall Street Journal report, he noted that consumers are paying an average of $5 per dozen, while supermarkets, facing wholesale costs of $7 per dozen, are sometimes selling eggs at a loss. “It seems kind of odd that, in an industry with so many ‘monopolists,’ supermarkets are doing this,” he remarked.
Why It Matters: Amid the crisis, Trader Joe’s has emerged as a price leader, maintaining dozens at $3.49 through direct supplier relationships.
Major retailers have implemented purchase restrictions, with Walmart Inc. WMT limiting customers to two 60-count cartons and Kroger Co. KR capping purchases at two dozen per visit. Some New York bodegas now sell individual eggs as dozens reach $10 in certain areas.
The national average egg price has surged 65% from last year, according to the U.S. Bureau of Labor Statistics, with January’s 15.2% increase driving nearly two-thirds of monthly grocery cost increases.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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