algertz’s Recent Comments

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  economic misunderstanding

  You're confusing 2 economic effects:  an income effect and a substitution effect.  You're absolutely right that the worsening of the economy and the overall rise in food prices will likely encourage Americans to choose cheaper, lower quality food options.  But there is also a substitution effect.  As the price of industrial food rises, as it will continue to do with rising demand for corn and oil prices, the price of local, organic, sustainably grown food is cheaper by comparison, leading consumers to consume more of it.  To tell which of these effects will be greater, ie whether higher food prices increase the percentage of their diet that Americans get from sustainably grown, local food, we would need to know more about the market.On Food prices and 'level playing fields' posted 1 year, 7 months ago 8 Responses