Spikes+in+Food+Prices+Projected+by+2013+by+Marco

//**REMEMBER: DO NOT SUMMARIZE THE ARTICLE!!!**//

=TITLE OF EXTRACT:= Spike in Food Prices Projected by 2013 =SOURCE:= http://green.blogs.nytimes.com/2012/03/07/spike-in-food-prices-projected-by-2013/?ref=foodprices

=DATE EXTRACT WAS WRITTEN:= March 7, 2012, 9:55 AM =DATE CURRENT EVENT WAS WRITTEN:= March 26, 2012

=EXPLANATION OF THE ECONOMIC THEORY RELATED TO THE ARTICLE:= According to predictions made by the New England Complex Systems Institute, by 2013, food prices will rise to a point in which widespread hunger and starvation will be caused because of the high price of food. The factors of this predicted rise in price of food caused by the conversion of corn crops to ethanol and the investor speculation on the future agricultural market. In order to equalize this threat towards the poor, the government has taken steps to lessen the harm of this situation. This includes limiting investors on their hold on agriculture or energy and ethanol subsidies were removed. Since the United States lifted these subsidies on ethanol, this product will not continue its track in raising the future price of food. Although these steps will minimize the affect of the soaring food prices, economists such as Dr. Bar-Yam still belief it isn't enough to save the poor from starving.

=VOCABULARY TERMS AND DEFINITIONS:= > Subsidies - a sum of money granted by the government or a public body to assist an industry or business so that the price of a commodity or service may remain low or competitive > Equilibrium - a state in which opposing forces or influences are balanced > Profit - a financial gain, benefit >
 * Demand - the desire of purchasers, consumers, clients, employers, etc., for a particular commodity, service, or other item
 * Market - A place or situation where buyers and sellers communicate with exchange in mind

=DIAGRAMS:= This is my solution to the problem, that in 2013, when the price of food is too high for people to afford, the government will subsidy part of the food market, the part that is essential and contains the basic foods needed for survival. This graph represents the subsidizing factor of the government and how they can aid the rising food prices.

=EVALUATION:= As mentioned in explanation of economic theory, the government already has taken two steps towards minimizing the overal effect the predicted rise of food prices by 2013. These are by eliminating the subsidy on ethanol and by controlling investor's power over energy and agriculture. These two steps are a beginning towards fixing this problem. Because of the conversion of corn crops to ethanol anad investor speculation on the market of agriculture, it is difficult to prevent the actual shift of price. However, if this does occur as harshly as described, the United States government could subsidize the essential parts of the food market, so that the poor will not starve to death and can still afford basic foods that are needed for them to survive. In order to be reasonable, this means that the government will most likely be subsidizing rather cheap foods such as rice or other flour products.