Food is too cheap now

Screenshot anime GJ-bu

What is the proper way to eat hamburger and fries? No more than once a day. ^_^ Food has become so cheap that there are now more obese humans than starving ones.

Back to our world, which has its own troubles. But most of these troubles are not natural or technological or even economic, but moral: Greed, anger and ignorance. Today, let us look at the Quora question “What would be a good plan to produce enough food for everyone on the planet?

Ryan Carlyle pretty much nails it in his answer, and I am happy to say that this is the most upvoted answer at the time of writing. We already produce 2700 calories a day for each human on Earth, enough for everyone to get a little chubby. But some of the food spoils, some is wasted, and much of it is eaten by those who already are a little chubby (and then some). The real problem however is bad government, says Carlyle.

I tend to think that for the most case, bad government stems from bad culture, specifically a culture of war and strife. The most terrible places to live on earth are those where people have a tradition for war, civil wars or tribal feuds. It is impossible to have a good government in such places. Bloodthirsty people will follow bloodthirsty leaders. Those who do not feel bad about people being shot will not feel bad about people going hungry either.

If it is not obvious to you that the problem of starvation is human rather than natural, just read his explanation again until you get it. It is pretty straightforward. If there is more than enough food for all, then the problem is not in the soil but somewhere between the farm and the mouth, at least I hope we can agree on this.

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What I want to bring up is related to that, but not quite the same. What would happen if all the wars ended, the dictators set their peoples free, and the ruined roads and warehouses were repaired? What would happen if hungry could finally eat their fill? The price of food would go up.

Today, because a billion people don’t get to eat their fill, there is that much more for the rest, and this presses the prices down. You may not think food is cheap, but in that case you are probably thinking of the wrong food. (Or you are reading this in the future, when various things have happened that I may or may not have predicted.) The price of food to farmers is so low that a great deal of arable land lies unused – the people who might have farmed it prefer to do things that are better paid, and buy their food in the supermarket. In the rich world, almost the only land being farmed is that which is suited for full-mechanized farming, where the work is done with large diesel-powered tractors and other farm machines. This is because if it required more manual labor, the hourly wage would simply not be worth the trouble.

If a billion more people came to bid for the same food, the price would necessarily rise. The supermarket may not look like an auction, but the food that ends up there has often passed through an auction earlier. Grain, potatoes, even cattle are auctioned. Unless you are getting your food from the local farmers’ market, chances are it has been auctioned. And even the local vegetable farmer will keep an eye on the Net to check what the current prices are.

So if all goes well, if we manage to end the wars and not start new ones (a big, big if) then food prices will go up. But this is not a bad thing. It is a good thing. First, it is a good thing because it is a sign that more people are getting food. But it is also a good thing because it means farmers will reopen their fallow fields, and small farms that would have been closed down will get new owners and continue to operate. With higher food prices, it will be worth the time to farm in terrain that is not quite as perfect for large machines. The production of food will expand until the price stabilizes, and it will likely do so on a level that is still very comfortable for us in the rich world. Even a ten percent increase in the hourly wages of the farmer would bring a lot of land back into production.

Over the last couple decades, the number of Chinese who have gone from poverty to middle class is large than the population of the USA. This means their eating habits have changed. No longer eating rice for all meals unless it is a public festival (in which case the family eats a chicken), people now eat pork and beef. It takes about ten pounds of corn to make one pound of beef (somewhat less for pork and poultry) so a lot of grain has gone into this process. But the world has not really noticed. The prices of food vary somewhat, but other factors have much larger effect. (Here in Norway, for instance, groceries have been consolidated into a few chains so the competition is less fierce. The chains have a lot of profit now, which they would not have had if we bothered to enforce competition. But food is too cheap for us to bother. Your state may vary.)

The population is expected to peak around 9.5 billion at the middle of the century, barring some unimaginable disaster (which will likely happen, but it is not clear whether this will make the number lower or higher). We can feed them all with a moderate increase in food prices. Of course, this is not a big deal in northern Europe or America. But there are other parts of the world where food is a big part of the budget. The solution to this is to let these people earn more. And this is currently happening.

While my friends in Europe and America feel like they are trapped in an endless recession, the developing world is growing at about 5% a year. That is from a low level, of course, but as Albert Einstein said, “compound interest is the most powerful force in the universe”. The next time it grow by 5%, it is 5% of a higher number. And as an old friend of mine would say: “$10 is a lot of money when you don’t have it.” For the poor, 5% more money makes a big difference. It allows them to improve their lot even more. With a bike, they may be able to commute to a better paid job in the town. With that better paid job, they may be able to afford an Android tablet. With that tablet, their kids may improve their school skills and get a better job than their parents ever could. Poverty is a deep valley, but the higher you climb, the higher you can climb. By 2050, it may not be the same parts of the world that are struggling. It may be those who are fat and lazy today.

We do not need cheaper food – we need less poverty. And we know the way to that. As the Buddha said, we need to remove the 3 poisons of the mind: Greed, anger and ignorance. The world is not Heaven, but we could make it a lot closer just by this.