This piece by the AP’sMichael Casey poses a bit of a challenge for market believers like me:
Over the past decade, Indonesia went from growing more than half its soy to relying on the U.S. for 70 percent of it. Now the poor among this country’s 220 million people are going hungry because of changes thousands of miles beyond their shores. It is the same story for dozens of countries that came to depend on richer nations for cheap food, only to find themselves squeezed when prices start rising last year.
I believe the economists’ jargon here is a pecuniary externality, which would not in strict terms be viewed as a “market failure.” The necessary demand destruction is happening via the people Casey interviewed who are going hungry.