“Rush to restrict trade in basic foods” (Financial Times)

[jody]

Rush to restrict trade in basic foods

Governments across the developing world are scrambling to boost farm imports and restrict exports in an attempt to forestall rising food prices and social unrest.

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But economists warned that such actions risked provoking an upward spiral in global food prices, which have already been pushed higher by rising demand from emerging markets like China and India and pressure on land from the growing production of bio-fuels.

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Disputes over sharing the costs and benefits of higher food prices have shot up the political agenda in many developing countries as sharp reductions in purchasingpower, particularly for the urban poor, have put increasing pressure on governments.

Global rice prices have risen by a third since the turn of the year, and higher soyabean costs have sparked protests in countries such as Indonesia.

If restricting food exports is essential to help society and a feasible government policy, why isn’t restricting imports of consumer products to help domestic production and employment also a feasible government policy?

[DBoon]

1. Who says helping the domestic economy is a priority for our leaders?

Assume they want to gut domestic production and employment to lower our standard of living, making us "cost competitive" with the developing world.

When our standard of living is that of a Chinese or Indian peasant, they will be happy to move production back to the US.

You post only makes sense if you assume our political leaders really want the average American to prosper.

I believe that is not the case.

[WinkyDink]

4. I agree. Profit is the standard, not national priorities.

[area51]

2. Great point.

We need to start manufacturing our own stuff again (for the nazi lurkers reading this, it's a national security issue to have to depend on others), and restrict H1-Bs and L-1s, as there are many unemployed Americans who could use the jobs (nazi lurkers: employing Americans will put money into infrastructure, inc. social security).

[muriel_volestrangler]

3. The idea is that restricting food exports stops people starving

in the developing countries. Restricting consumer product imports would help the balance of payments, and might eventually stimulate domestic production and employment, but it's not needed to save lives.

[jody]

5. Interesting point but there is a possibility the U.S. will also limit exports of ag products. n/t