2008-04-20

Rising food prices

Food prices are rising, the poor risk hunger, what should governments do?

Some advocate price controls. The problem is that if prices are kept artificially low, the food business won't be so profitable and supply will decrease.

Some say that if your country's people are going hungry, it's madness to be exporting food, so food exports should be banned. The problem is that this depresses prices, which again leads to a decrease in supply.

I think the real problem is that some people are poor. In the UK we actually tax the poor, and I've heard it said that poor people pay more tax as a proportion of their wealth than rich people. All taxes that aren't related to income should be abolished. This includes National Insurance and VAT. How would this be paid for?
  • Ending agricultural subsidies
  • Legalizing prostitution
  • Legalizing drugs.
  • Abolishing the national minimum wage.
  • Freeing up trade by ending protectionism.
If we took these steps, then we could let food prices find their correct level, and be confident that people could afford to pay for it.

2 comments:

  1. " * Ending agricultural subsidies
    * Legalizing prostitution
    * Legalizing drugs.
    * Abolishing the national minimum wage.
    * Freeing up trade by ending protectionism."

    Thing is, you've not said how these factors relate to food prices...

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  2. This is a list of things that I'd do to pay for the reduction in taxes. Then with more money in their pocket, people could pay the higher food prices.

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