It’s kind of odd to watch how the problems in Egypt are being covered. This is another example of how the press has no understanding of economics. Egypt isn’t the only nation facing civil uprising. Tunisia, Egypt, Algeria, Morocco and Yemen are all facing uprisings of varying degrees because of the rising cost of food. The liberal culprit will make Thomas Malthus smile. Any time there is a worldwide food supply issue liberals blame overpopulation; however, the Federal Reserve’s monetary policy is driving down the dollar, causing the price of commodities to rise.
The surge in global food prices since the summer – since Ben Bernanke signalled a fresh dollar blitz, as it happens – is not the underlying cause of Arab revolt, any more than bad harvests in 1788 were the cause of the French Revolution.
Yet they are the trigger, and have set off a vicious circle. Vulnerable governments are scrambling to lock up world supplies of grain while they can. Algeria bought 800,000 tonnes of wheat last week, and Indonesia has ordered 800,000 tonnes of rice, both greatly exceeding their normal pace of purchases. Saudi Arabia, Libya, and Bangladesh, are trying to secure extra grain supplies.
This is the result of a nation that has spent more than it can possibly afford. Marxists cite exploitation theory as one of the evils of capitalism, but in this case it’s the state’s appetite for entitlements and low taxation that is exploiting the developing world. Instead of paying our debt the Federal Reserve is flooding the market in dollars to drive down the cost of our debt. Plus, thanks to our idiotic leadership in both parties we have diverted corn to ethanol production. Bad policies lead to real problems.
The first places to experience the pain of higher food costs will be the developing nations. Just think about this; Egypt is apparently one of the more developed Middle-Eastern nations; however, its GDP is $216 billion (pop. 80 million). To put that in perspective Singapore has a population of 5 million and its GDP is $217 billion.
As long as commodity prices continue to rise nations like Egypt are going to struggle. Nothing leads to unrest quicker than a population that can’t afford to eat.
San Antonio has declared war on fat, according to a recent article in the San Antonio Express-News. Aided by $15.6 million in federal stimulus dollars to combat obesity in this restaurant-heavy city that has also been tagged as one of the fattest cities in America, San Antonio is spending our tax dollars with wisdom.
Remember Doritos! Remember Dr. Pepper! Remember the Alamo!
First up is the elimination of sugary and fatty confections and beverages in the city’s 250 beverage vending machines and 75 snack dispensers. Instead, San Antonio residents will get to choose from a delicious smorgasbord of waters and diet drinks. Yummy! But that’s not all! Bags of chips will have to be less than 1.5 ounces.
Fortunately for city employees, the article notes, they won’t be banned from consuming fatty foods and drinks at work. But one wonders how far off that ban is, and when government will begin regulating a citizen’s intake of fatty foods and drinks. It’s a Utopian future of organic whole grain rice cakes harvested locally by illegal immigrants, washed down with government-approved water.
“I asked the staff to remove the high-calorie soda drinks from our vending machines,” [City Manager Sheryl] Sculley said. “I’m a fitness person, and I care about our employees, and I want them to be healthy. And I think this is a very small gesture.”
I have a small gesture in mind as well. It involves the strategic deployment of the middle digit of my hand in the general direction of City Manager Sheryl Sculley and the other nanny ninny busybodies who want to confiscate my sugar, fat and calories. You can have my Doritos and Dr. Pepper when you pry them from my cold, dead hands.
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