Cafe Hayek: People Harmed by Capitalism or by "Green" Policies?

« Dangerous Expansion of the Fed's Power | Main | The Goal Is Consumption» Don Boudreaux

April 17, 2008

People Harmed by Capitalism or by "Green" Policies?

Don Boudreaux

Indur Goklany's 2007 book, T he Improving State of the World , is impressively fact-packed and well-argued. I recommend it highly. I recommend also his op-ed appearing in today's edition of the New York Post. Here are a few paragraphs.

President Bush's call yesterday for a dramatic slowdown of green-house-gas emissions reflects growing concern for the consequences of climate change. But what about the consequences of the world's response?

The fact is, food riots resulting partly from the United States' alternative energy policies have arrived at our front door. Crowds of hungry demonstrators swarmed the presidential palace in Haiti last week to protest skyrocketing food prices.

In recent years, we've heard that climate change could be catastrophic for nature and humanity. But it's becoming increasingly evident that over the next few decades, climate-change policies could prove even more catastrophic.

....

Supposedly climate-friendly policies in the United States and the European Union - subsidizing the production and consumption of such renewable biofuels as ethanol and biodiesel - have diverted such crops as corn, soybeans and palm oil from food to fuel. This, in turn, has increased prices for food worldwide at a time when the highly populous and newly prosperous East and South Asian countries are demanding more of it.

Posted by Don Boudreaux in Current Affairs, Energy, Entertainment, Myths and Fallacies | Permalink

TrackBack

TrackBack URL for this entry:
http://www.typepad.com/services/trackback/6a00d834518ccc69e200e551f111e58834

Listed below are links to weblogs that reference People Harmed by Capitalism or by "Green" Policies?:

Comments

I was looking at pictures of those protesters in the WSJ the other day and wondered to myself how unproductive it all was.

Like truckers protesting high fuel costs. Why do people think governments can solve these kinds of problems? Why would you want it to?

It seems to me when you see high prices you're seeing opportunity. Right now we hear about the strains put on truckers but in a few months we'll be hearing about those companies that came up with innovative ideas to be more efficient than their competitors.

Posted by: Marcus | Apr 17, 2008 7:29:11 AM

marcus...I agree about govt. not solving problems...but they certainly could stop causing them, as this green-policy-mania is certainly doing.

So, in that, we could storm some government buildings...figuratively, of course.

Posted by: shawn | Apr 17, 2008 8:29:40 AM

Shawn,

Your post contains the wisdom necessary to rectify the situation, but I don't think you realize it.

First, the government is perfectly willing to kill you to retain control. Second, as long as they know you will only respond figuratively they know they have nothing to fear.

Why we lost control and our freedom, we became afraid to act; and, only respond figuratively.

Posted by: vidyohs | Apr 17, 2008 8:41:01 AM

Marcus,

Government caused the problem in the first place. These "green" policies are anything but. There may be opportunity, as you point out - but to rent seek, as all of this stuff is subsidize. All this opportunity causes more harm to the environment. Expanding "renewable" fuels means more deforestation to clear the farm land necessary to grow "renewable" energy. But what else can we expect from government subsidized inefficiency?

Posted by: Methinks | Apr 17, 2008 9:58:45 AM

. . . from your cold dead hands . . .

Posted by: Gil | Apr 17, 2008 10:06:06 AM

I think maybe my post was unclear. When I wrote about opportunity I was referring to the higher fuel prices truckers are paying, not the food costs.

You are, of course, correct. The problem with higher food costs appears to be poorly conceived government policies. The solution then is to eliminate those policies.

Posted by: Marcus | Apr 17, 2008 10:12:36 AM

marcus,

Why do people think governments can solve these kinds of problems?

just because....

Posted by: John V | Apr 17, 2008 11:04:05 AM

It is a short term problem. In agricluture higher price will produce more supply. You can count on it. Still bad but should not fester unless more and more contues to go to fuel.

Posted by: Floccina | Apr 17, 2008 11:06:13 AM

This nonsense is nothing new. I'm self-employed as a restaurant owner and I feel it as well. Compared to a few years a ago, some of food supplies are a lot higher.....flour being the latest. It has tripled since last september. I just recently raised my prices.

As I watch politicians trying to gain votes by promising to slay the beast, I simply cannot stop thinking of how they caused this in the first place. Ethanol was something I decried a few years back and it's really starting to take hold now. The ripple effects are incredible....and with no net improvement on its original task(big surprise!).

The simple fact is that our problems are wrought by POLICIES not natural forces of business. It's undeniable, unmistakable and unavoidable. Watching people pretend otherwise is simply sickening.

Posted by: John V | Apr 17, 2008 11:11:37 AM

floccina: "In agricluture higher price will produce more supply."

You are correct, floccina, but I do not think this is a short term problem.

The demand for non-food uses of food crops will continue to grow. That's because governments continue to demand more biofuels. Higher supply will not mean lower prices if demand continues to grow. As a result, food prices will remain high for as long as governments mandate biofuels. As I see it, the reduced standard of living caused by government-mandated misallocation of resources is not a short term problem.

Posted by: John Dewey | Apr 17, 2008 11:43:50 AM

When I wrote about opportunity I was referring to the higher fuel prices truckers are paying, not the food costs.

Thanks for the clarification. I thought you were talking about the not so green "green" alternatives. However, in terms of petroleum too, government has a hand in driving up pices. Note the onerous regulations and prohibitions on drilling imposed on oil companies which serves to reduce supply.

Posted by: Methinks | Apr 17, 2008 12:00:46 PM

In agricluture higher price will produce more supply. You can count on it.

Only if higher profits are involved.

Posted by: Sam Grove | Apr 17, 2008 12:06:52 PM

It's very simple. If you go against the global warming god, you get smacked down HARD. On the net, in social circle and professionally. In fact, if you don't toe the leftist orthodox line in this country to a T, you risk death.

Posted by: FreedomLover | Apr 17, 2008 12:10:26 PM

In agricluture higher price will produce more supply. You can count on it.

Only if higher profits are involved.

And other factors fall into place, such as abundant water, electricity, fuel prices, fertilizer prices, increased stocks, demand not growing faster than new supply, hectares devoted to crops etc....

Posted by: Mcwop | Apr 17, 2008 12:12:53 PM

Methinks - with all these onerous regulations and what not, it's a wonder our economy functions at all.

Posted by: FreedomLover | Apr 17, 2008 12:13:45 PM

well, freedomlover, maybe not quite death. :) Though, it's been...professionally difficult...to question sustainable/green design from within.

Posted by: shawn | Apr 17, 2008 12:58:54 PM

Shawn:

My point is that the leftist orthodoxy being what is, you can't even speak up in public for fear of total social ostracism. It's like I have to go to Kansas City to find people who agree with me on this, but then I'll totally disagree on religion with them.

Posted by: FreedomLover | Apr 17, 2008 4:32:48 PM

you can't even speak up in public for fear of total social ostracism.

Fear? I welcome ostracism by these asshats. I was once treated to a morning of glaring when it became known that I was an evil non-Marxist. I glared back - that put an end to it. They can dish it out, but they can't take it.

Posted by: Methinks | Apr 17, 2008 5:35:24 PM

Once again, Methinks, you've said it well, and have me wishing there were more women in the world like you.

I suspect that so-called "green" policies are really more about appeasing the consciences of their advocates than helping the environment.

Posted by: mnm | Apr 17, 2008 8:26:36 PM

Let them eat green cake!

Posted by: Mick | Apr 17, 2008 9:42:37 PM

While I agree philosophically with the sentiment that poor policy causes massive problems, I would like to see a quantitative analysis of the degree to which "green" policies, specifically ethanol subsidies, have contributed to the increase in food prices. Is anyone aware of such an analysis?

Regards,

Posted by: Ken | Apr 18, 2008 3:13:13 PM

It's a bit unfair to put ethanol subsidies completely on the "leftist global warming orthodoxy". Most of your leftist environmentalists would tell you that corn ethanol is at best *arguably* a bare net positive replacement for petroleum on environmental grounds, and would gladly take that subsidy money away and use it to subsidize research or production of fuels that actually lower greenhouse emissions significantly.

The real driver of the ethanol subsidy is the same faction that drives all agricultural subsidies -- agribusiness.

As a leftist environmentalist, about the best thing I can say for ethanol subsidies is that at least that money isn't getting spent on making war.

Posted by: Michael Sullivan | Apr 18, 2008 3:26:36 PM

As a leftist environmentalist, about the best thing I can say for ethanol subsidies is that at least that money isn't getting spent on making war.

I doubt that those funds have any impact on the war. They've been printing all they need to cover both.

Posted by: Sam Grove | Apr 18, 2008 3:47:09 PM

As a leftist environmentalist, about the best thing I can say for ethanol subsidies is that at least that money isn't getting spent on making war.

Posted by: Michael Sullivan | Apr 18, 2008 3:26:36 PM

Can you call daily patrols in Baghdad "war"? I don't see armies of tanks clashing in the desert. THAT would be war.

Posted by: FreedomLover | Apr 18, 2008 4:11:15 PM

Can you call daily patrols in Baghdad "war"?.

I think they call it 'asymmetric warfare'.

Posted by: Sam Grove | Apr 18, 2008 4:48:34 PM

Here is another related article from today’s WSJ about how

Our Climate Numbers Are a Big Old Mess

Not to bring back bad memories, but Muirgeo once posed the question to me “Do you think scientists just make this stuff up?”

Well, yes. See above.

At least they make up their flawed statistical methodologies, which yield false results, especially if they are the results they are seeking.

Incidentally, this is why so many engineers take “climate science” apart so quickly & easily.

Posted by: Mesa Econoguy | Apr 18, 2008 6:52:02 PM

to be fair, ethanol policies aren't the only cause
"new customs procedures aimed at collecting revenues and stopping the flow of drugs has left tons of food rotting in ports"

Posted by: mopey | Apr 21, 2008 4:54:30 AM

[i][u][b][b]Say please me what weather in the different countries of the world interests[url=http://girlgirl.890m.com/index.htm]?[/url][/b][/b][/u][/i]

Posted by: Gam$RcgylL | Apr 23, 2008 4:45:37 AM

[b]Auto Insurance[/b]
Auto Insurance

See if we can bump down the price of your car insurance. We'll beat your car insurance renewal quote.

Auto insurance can help protect you, your family and your car. Auto insurance can help you restore your assets if they're lost or damaged. It can also help protect you in the event of a lawsuit. All of which can mean greater peace of mind for you.

Auto insurance will help:

* Safeguard your investment in your car
* Pay for medical expenses in case of an accident
* Provide financial protection from lawsuits
* Cover losses caused by uninsured or underinsured drivers
* Pay for damage due to theft, vandalism or natural disasters
* Auto insurance coverage helps you to meet whatever might be coming down the road with a greater peace of mind.

With Online-Insurance-Advisor it is easy to buy your auto insurance online. Our site is easy to use and our goal is to show you how much you can save with our services. Not only will you save your money, but you will save your time too. You can complete the process and have your proof of insurance in 10 minutes!

Online-Insurance-Advisor has developed a better, more affordable way to help keep safe drivers covered and rewarded. Accidents happen – we understand. We also understand you deserve something back when they don’t. Now it’s time you get the auto insurance you’ve always wanted. The auto insurance features are available in many states and provide greater choices and the rewards you deserve – from day one and at an affordable rate.
[url=http://insurance.crdcards.com/][/url]

Posted by: AlbertBoG | Apr 23, 2008 2:23:13 PM

Hello
ContentWatch provides Internet barrier software, including internet clothing software and
[url=http://clearblogs.com/antoniol/105516/parental+control+software+online.html]devices devotion government[/url] and anti-phishing tools. Parental direction software preserve
children online screening and blocking objectional Internet sites parents deem inappropriate. Naomi
internet cloth - unconstrainedware web clothing, download parental direction software cloth may consider parents
use less guardedness internet surfing,. Provider customizable worker Internet clothing answers.
Makers Internet leaching and reporting appliances. Internet strainer Software - Top Internet strainer
Software Reviewed, 2008 their children's online activities, Internet leach software adds obstinate,.
not busy Internet leach and parental command software. K9 Web screen our unconstrained Internet screening and
[url=http://clearblogs.com/antoniol/105517/free+parental+control+software+chat+online.html]command[/url] answer home. American progeny Online provides Internet aegis TotalNetGuard, Christian-based
web happiness cloth.
Bye

Posted by: antoniol | Apr 23, 2008 3:45:26 PM

Very interesting... always great to see what other people are thinking. Differing opinions is what makes this life so interesting. Check out my website to see my views on things www.hypnotist.com

Posted by: hypnoman | May 12, 2008 2:41:19 PM

Very interesting... always great to see what other people are thinking. Differing opinions is what makes this life so interesting. Check out my website to see my views on things www.hypnotist.com

Posted by: hypnoman | May 12, 2008 2:58:03 PM

Very interesting... always great to see what other people are thinking. Differing opinions is what makes this life so interesting.

Posted by: hypnoman | Jun 14, 2008 1:51:00 PM

I can't imagine why people think that the government can solve all the world's problems. Fuel prices is a perfect example. We buy fuel from overseas, and subsidizing it will only fuel inflation so it'll be a vicious cycle.

Posted by: Discount costume jewelry | Jun 15, 2008 10:33:45 PM

The US can't win, can they? Everybody blames them for every environmental problem that's going on anywhere in the world, and when they go to fix it, now they are hurting poor countries because they can't buy food!

Posted by: Josh Neumann | Oct 2, 2008 2:45:52 PM

The comments to this entry are closed.