FacebookTwitterGoogle+RedditEmail

The Food Speculators

About one-sixth of the world’s population — 1 billion people — suffers from malnutrition. Stories about global hunger tend to get ignored by the media even though the number of hungry people has been increasing rapidly in recent years. This problem remains acute even as nations report renewed economic growth and as global food production remains stable.

Liberal economists love to claim that food shortages stem from ineffective state regulations. They argue that the liberalization of food markets is the surest way to achieve abundant food supplies. Alas, three decades of continuous economic liberalization have not led to an abundance of food, but to hunger on a scale never before seen in the history of mankind.

Of course, governments sometimes play a role in creating these problems, but the worst crop failures occur in free markets. Shortages of grain and other products only motivate businesspeople to indulge in profiteering. As prices skyrocket, profiteers — anticipating even higher prices — find it more advantageous to hold on to their goods than to sell them to consumers. And the longer a particular foodstuff can be stored, the faster the price for it soars.

Most of the huge sums of money the government allocated to fight the economic crisis from 2008 to 2010 never reached the real sector but were used for speculating on the market. Prices are outpacing demand, thereby creating new imbalances and hampering economic development. Rising prices have made food an unaffordable luxury for entire social groups and even countries. In Russia, where hunger has thankfully not reached epidemic proportions, high food prices have quickly lowered the standard of living, disrupted consumption patterns and sharply aggravated social conditions.

In the Middle East, the food crisis has already turned into a social explosion. The “bread revolutions” shaking Tunisia, Egypt, Yemen, Libya and Algeria are the natural outcome of many years spent developing a system in which human needs, and even the right to life itself, are subordinated to the whims of the market.

BORIS KAGARLITSKY is the director of the Institute of Globalization Studies in Moscow.

 

More articles by:

Boris Kagarlitsky PhD is a historian and sociologist who lives in Moscow. He is a prolific author of books on the history and current politics of the Soviet Union and Russia and of books on the rise of globalized capitalism. Fourteen of his books have been translated into English. The most recent book in English is ‘From Empires to Imperialism: The State and the Rise of Bourgeois Civilisation’ (Routledge, 2014). Kagarlitsky is chief editor of the Russian-language online journal Rabkor.ru (The Worker). He is the director of the Institute for Globalization and Social Movements, located in Moscow.

June 20, 2018
Bill Hackwell
Unprecedented Cruelty Against Immigrants and Their Children
Paul Atwood
“What? You Think We’re So Innocent?”
Nicola Perugini
The Palestinian Tipping Point
K.J. Noh
Destiny and Daring: South Korean President Moon Jae-In’s Impossible Journey Towards Peace
Gary Leupp
Jeff Sessions and St. Paul’s Clear and Wise Commands
M. G. Piety
On Speaking Small Truths to Power
Dave Lindorff
Some Straight Talk for Younger People on Social Security (and Medicare too)
George Wuerthner
The Public Value of Forests as Carbon Reserves
CJ Hopkins
Confession of a Putin-Nazi Denialist
David Schultz
Less Than Fundamental:  the Myth of Voting Rights in America
Rohullah Naderi
The West’s Over-Publicized Development Achievements in Afghanistan 
Dan Bacher
California Lacks Real Marine Protection as Offshore Drilling Expands in State Waters
Lori Hanson – Miguel Gomez
The Students of Nicaragua’s April Uprising
Russell Mokhiber
Are Corporations Are Behind Frivolous Lawsuits Against Corporations?
Michael Welton
Infusing Civil Society With Hope for a Better World
June 19, 2018
Ann Robertson - Bill Leumer
We Can Thank Top Union Officials for Trump
Lawrence Davidson
The Republican Party Falls Apart, the Democrats Get Stuck
Sheldon Richman
Trump, North Korea, and Iran
Richard Rubenstein
Trump the (Shakespearean) Fool: a New Look at the Dynamics of Trumpism
Kevin Zeese - Margaret Flowers
Protect Immigrant Rights; End the Crises That Drive Migration
Gary Leupp
Norway: Just Withdraw From NATO
Kristine Mattis
Nerd Culture, Adultolescence, and the Abdication of Social Priorities
Mike Garrity
The Forest Service Should Not be Above the Law
Colin Todhunter
Pro-GMO Activism And Smears Masquerade As Journalism: From Seralini To Jairam Ramesh, Aruna Rodrigues Puts The Record Straight
Doug Rawlings
Does the Burns/Novick Vietnam Documentary Deserve an Emmy?
Kenneth Surin
2018 Electioneering in Appalachian Virginia
Nino Pagliccia
Chrystia Freeland Fails to See the Emerging Multipolar World
John Forte
Stuart Hall and Us
June 18, 2018
Paul Street
Denuclearize the United States? An Unthinkable Thought
John Pilger
Bring Julian Assange Home
Conn Hallinan
The Spanish Labyrinth
Patrick Cockburn
Attacking Hodeidah is a Deliberate Act of Cruelty by the Trump Administration
Gary Leupp
Trump Gives Bibi Whatever He Wants
Thomas Knapp
Child Abductions: A Conversation It’s Hard to Believe We’re Even Having
Robert Fisk
I Spoke to Palestinians Who Still Hold the Keys to Homes They Fled Decades Ago – Many are Still Determined to Return
Steve Early
Requiem for a Steelworker: Mon Valley Memories of Oil Can Eddie
Jim Scheff
Protect Our National Forests From an Increase in Logging
Adam Parsons
Reclaiming the UN’s Radical Vision of Global Economic Justice
Dean Baker
Manufacturing Production Falls in May and No One Notices
Laura Flanders
Bottom-Up Wins in Virginia’s Primaries
Binoy Kampmark
The Anguish for Lost Buildings: Embers and Death at the Victoria Park Hotel
Weekend Edition
June 15, 2018
Friday - Sunday
Dan Kovalik
The US & Nicaragua: a Case Study in Historical Amnesia & Blindness
Jeremy Kuzmarov
Yellow Journalism and the New Cold War
Charles Pierson
The Day the US Became an Empire
Jonathan Cook
How the Corporate Media Enslave Us to a World of Illusions
FacebookTwitterGoogle+RedditEmail