Food prices are expected to rise 8% in 2009. Feedstuffs Foodlink, Nov 17, 2009.
The number of hungry children in the U.S. rose 50% in 2007, increasing by 700,000 people. Source: Associated Press Article.
Many blame this, at least partially, on the U.S.'s absurd ventures into ethanol. It is important to remember that subsidies represent far more than a few wasted dollars spread over millions of taxpayers. Subsidies force people to divert resources in a way they do not wish, often away from things people really find important. The Economist recently described a German subsidy venture in solar energy as follows .
Germany’s generous solar subsidies covered the roofs of one of the world’s most sunless countries with solar cells, thus pushing up the price of silicon and reducing the cost-effectiveness of solar power in countries where it actually makes sense.
