Thursday, March 24, 2022

Food Shortages And The Surge In Prices

Ukraine and Russia are among the largest wheat producers in the world.  Ukraine in particular is known as the breadbasket of Europe.  Obviously as the war in Ukraine rages on, their wheat production will be impacted.  And, with sanctions on Russia and the West cutting off trade with Russia,  their excess crop is likely to be bought by India and China.  The US produces more than enough food to feed our country.  Usually, America exports a lot of our food production.  However, just like oil is a global commodity so is food.  While the United States may not experience food shortages, the food shortages in other countries combined with the higher cost of energy because of Joe Biden's failed Energy policy,  will dramatically drive up the cost of food in the United States. 

Of course, this will hurt the poor and middle class most.  No doubt the US Government will increase the amount of money going into food stamps, which today is a Debit Card program for people on Welfare, but that will do nothing to help the working poor and the middle class that will be priced out of various cuts of meat and other food products.  One good by product if this mess is that perhaps families will cut down on processed junk food to buy more meat, chicken, fish, eggs, fruit etc.  When we were kids my parent's could not afford soda pop so we drank Kool Aide.  

Most important, we have not experienced food deprivation in the United States since the Great Depression.  Even during the worst of times years after, food was never an issue.  We never had to worry about stores having empty shelves as is happening today because of the supply chain fiasco.  All of this is the result of globalization.  We live in a very interconnected world for better or worse.  We will now see that it only works as long as it works.  When there is major dislocation coming from wars or droughts anywhere in the world, impacting first world countries, it impacts all first world countries.  However, this is a man made problem.  Joe Biden's policies have made a mess of the world.  Add in crazy Vladimir Putin and the war in Ukraine and we get a perfect storm.  Oh well pasta fagioli, beans and macaroni is very nourishing.  Cook it with elbow pasta and any kind of beans in a tomato basil sauce and you get both protein and carbohydrates.  Delicious.  

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