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Policymakers across Asia seem in near panic over spiraling food inflation, but is it really so...

Policymakers across Asia seem in near panic over spiraling food inflation, but is it really so troublesome? High food prices reflect greater affluence, encourage investments in crop productivity, and transfer wealth from the cities to rural areas. Think NYC to Hoopeston, IL. Can that be so bad?
Comments (3)
  • 7footMoose
    , contributor
    Comments (2266) | Send Message
     
    Think high food prices, short supply, people hungry, riots and overthrow of the government; you're out of a cushy job and maybe if your not quick enough you lose your life. Not so cool if you think of it that way, huh.
    13 Jan 2011, 11:32 AM Reply Like
  • Silentz
    , contributor
    Comments (708) | Send Message
     
    "High food prices reflect greater affluence"

     

    A gradual increase in food prices maybe. But spiraling inflation? If inflation is outstripping wage increases, affluence isn't the word I'd use.
    13 Jan 2011, 11:45 AM Reply Like
  • banyon
    , contributor
    Comments (63) | Send Message
     
    When the greater affluence creates massive disparities in income, it doesn't necessarily mean that the lower classes in these countries can simply pony up the extra bucks for the higher prices.

     

    These income disparities are much more pronounced in China and India than in a fully developed country.
    15 Jan 2011, 01:33 PM Reply Like
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