Wednesday, May 7, 2008

Food Prices and the Poor

I know that most of you out there probably don't give a flying fuck about food prices and poor people, but for the few that do, here's an interesting take on food subsidies.

Subsidizing food prices for the poor may actually damage their nutrition intake.

Why is that?

An extremely simplified explanation of a complex problem:

This is because the poor usually spend most of their money on the basic foods; bread or rice, especially after food prices go up. But once you decrease the price of those basic foods, the poor consumers then divert the money they have saved into buying other types of tastier, but less nutritious foods.

Enjoyment goes before health, I suppose.

Those that want a much more professional and clear explanation can go here:
Freakonomics

-p.

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