Why the Food Movement Should Occupy Wall Street

A nice bit of commentary and analysis at Civil Eats, by Siena Chrisman of WhyHunger.

Excerpt:

Speculation Drives up Food Costs:

At the most obvious level, as the Institute for Agriculture and Trade Policy recently wrote, “Wall Street deregulation has not only made the stock market extremely volatile, it has increased prices and price volatility in agricultural markets.” That is, the relationship between government and Wall Street firms has turned food into commodity like any other, subject to the whims of the market. For decades, only people directly involved in agriculture (e.g., farmers) could freely participate in trade of futures of agricultural commodities (e.g., corn, soy, wheat). Outside speculators were allowed into these markets but with strictly enforced limits to how much they could buy. Futures trading served a practical purpose, giving farmers a guaranteed price for future harvests, and prices stayed relatively stable and reasonable for both buyers and sellers.

But in 2000, a wave of industry-backed deregulation raised and then removed these limits on speculation, which opened commodity markets to a flood of new players—these later included funds controlled by some of the biggest Wall Street firms looking for new investment opportunities after the housing bubble burst. Flooded with new investments unconnected to any direct stake in crop prices, in 2008, the commodity markets exploded, driving up grain prices worldwide. The grain price spikes were catastrophic for millions of people worldwide. Farmers, who sometimes benefit from high grain prices, mostly were no better off, because similarly skyrocketing energy prices also drove up prices of agricultural inputs.

In 2008 and 2009, the UN estimated that an additional 130 million people were driven into hunger by the food price bubble. Spontaneous food riots broke out in dozens of countries where chronic hunger is a reality. Today’s Wall Street protests are not unconnected to those…

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