Last week, the United Nations hosted a 3-day summit on the global food crisis in Rome. The summit was attended by 183 countries and included heads of state, such as Egypt President Mohammed Hosni Mubarak and Brazil President Luis Inacio Lula da Silva.
Despite a consensus that corn-based ethanol is contributing in some part to the rise in food prices, an agreement could not be reached on asking for international guidelines in biofuel production. Agriculture Secretary Ed Schafer echoed the Administration’s stance that the effect is only 2-3%, while most other countries view the effect as much more substantial.
While other factors are contributing to the rise in food prices, such as a growing population that creates more demand for food and energy, and drought and climate issues, ethanol policy IS the only factor that lawmakers can control. It’s time for them to start providing relief from high prices where they can.
The need for relief is emphasized by the latest employment numbers. Last Friday the Department of Labor released new jobs data and as a result, the Dow Jones Industrial Average lost 400 points in one day. The nation's unemployment rate jumped to 5.5 percent in May, the biggest monthly rise since 1986, with employers cutting 49,000 jobs. With so many people losing their jobs in May, and still having to put food on the table, times are tough. Additionally, since food and energy prices keep rising with no end in sight, paychecks aren't stretching as far, which could further curb economic growth.
Monday, June 9, 2008
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1 comments:
This is a very misleading post, as are many on this blog. There is a lot lawmakers can do to help lower oil prices, which would also lower grain prices. The easiest -- and quickest -- is to get the futures/options markets out of the control of speculators. That would drop oil prices 25 percent very quickly - and grain prices would follow. Much better than changing renewable fuel policy - which is helping to keep gas prices from getting even higher.
Check this out: http://seattletimes.nwsource.com/html/nationworld/2004456284_oil04.html
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