Friday, June 24, 2011

Food prices and the Missouri River flood

Corn and more corn
Have you noticed the ridiculously high prices at the grocery store lately? Blame it on the Corn Bubble. Reuters reports that earlier this month, "the World Bank and other international organizations called on governments to stop their ethanol subsidies because of concerns they were driving up food prices" – and pushing millions of people worldwide into poverty. Read more...

The environmentalists and the Missoroui River flood
There are many well-publicized examples of absurd obeisance to the demands of radical environmentalists resulting in great economic harm.  The Great Missouri River Flood of 2011 is shaping up to be another -- only this time, the price will likely be paid in lives lost as well as treasure.  Ayn Rand said, "You can avoid reality, but you cannot avoid the consequences of avoiding reality." Read more...

Both of these examples highlight the law of unintended consequences.