A Week of Hunger

By Michael Gerson - Washington Post, Opinion
Wednesday, July 09, 2008 - Web Link
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July 9, 2008

Those of us who dimly remember the gas lines of the 1970s tend to view commodity price spikes as the temporary work of international villains. But anyone still expecting the return of cheap oil is in for a long wait. Rising energy prices are mainly the result of unprecedented global prosperity -- a rising billion in China and India determined to own automobiles and air conditioners. This increased demand for oil, natural gas and coal has almost nothing to do with the policies of America or the designs of OPEC.

Given the strain on household budgets, it is impossible to call this a blessing, even a mixed one. But it might properly be called a mixed curse. During the 1992 campaign, some Democrats proposed a controversial 50-cent-a-gallon increase in the gas tax to reduce domestic consumption and encourage alternatives to oil. Since then, gas prices have risen by more than $3 a gallon, resulting in individual suffering and aggregate benefits. Alternatives to oil and coal -- from wind to solar to nuclear -- are suddenly more economical in comparison. Chevrolet and Toyota are only a couple of years away from offering plug-in hybrids that could average hundreds of miles to the gallon.

But our other demand-driven crisis -- food inflation -- is simply a curse since there is no pleasant alternative to eating. This problem has a variety of causes: the growth of meat-based diets across the world, requiring large amounts of grain for animal feed; the diversion of acreage to the production of ethanol; the rising cost of food transportation and natural gas-based fertilizers; water shortages and climate disruption. Recent prices have dipped a bit, but expensive food now seems to be a fact of life.

On the fringes of subsistence in the developing world, sudden double-digit jumps in the prices of staples have resulted in riots. In America, a rise of about 6 percent in the price of groceries this year has led the poor to adopt a variety of survival strategies, from buying food that is beyond its expiration date to visiting food banks.