Eating Disorder: How Governments Raise Food Prices

Eating Disorder: How Governments Raise Food Prices

Antonio Zapata

Mr. Marshall

Business101

April 30, 2015

        Higher food prices are upsetting Americans but are killing a lot of people in the industrialized parts of the world. Hundreds and millions of people that are very poor are dying and facing malnutrition and chronic hunger. In 12 months leading to march of 2008, food prices began to rise more than 52 percent. In other countries higher food prices start riots or demonstrations, in mexico thousands marched in protest. People all over the world are in this act in Malaysia 50 people got arrested for demonstrations.

        The agricultural policy is based on interventions such as tariffs, quotas, and land set-asides, are designed to keep food supplies down and prices up. Other interventions such as price supports and other subsidies are designed to keep marginal farmers in business. Food stamps and school meals are offset the effects to government policy to make food more expensive. Ethanol and biofuel take up are farm land and gives up food and crops for farmers as well takes there business away.

        When this was in place the crops were down tremendously putting corn on  a higher market price. A lot of things for the farmers are going down the percent of rice went down 3 percent, cotton went down 18 percent, as all these crops are falling the price has risen. Higher prices has also made livestock feed more expensive. These prices for the corn are hurting the people that have chickens, cows, pigs and many animals. biofuels have contributed between 20 and 30 percent to higher food costs.