Wednesday, 23 January 2013

Surviving the Economic Crisis - Creating National Food Programs


Creating a National Food Program could be one way to cut back on the expense of importing food, and at the same time creating some employment in an essential industry. This may go against the market, but if we look at the immediate needs of many Countries, people do mention the need for cheaper food.

In post- Industrialized Countries the need for food was simply solved by importing it from emerging countries, because it was cheaper than producing it themselves. After the economic meltdown of 2008, these countries are exposed because they produce very little in food or industry. Agriculture was discouraged and unprofitable when times were good, but now times are bad. There may be a need to look at agriculture in a different way, and make use of the empty land, that could easily produce food, now imported at a high cost. One example is the UK:

The UK import over 40% of their food, and with an ever weaker pound, this simply means people are paying more for food. Many of these people are on State pensions or unemployment benefits. These benefits may need to increase, if food prices continue to rise.

 

One simple solution to the problem facing Countries like the UK is produce more food in their own Countries, and the Government offer this food to the unemployed. In return unemployment benefits could be cut, because calculated food costs are reduced from these benefits. This solves three problems; rising unemployment, rising food prices and the rising costs of paying benefits to the unemployed. It creates employment, reduces costly food imports, and reduces the need to increase unemployment benefits.

 

National Food programs may go against the economic virtues of free trade, but could become a feature of this new recession, when Governments are forced to realize that beneficial savings can be made by implementing programs that would not only provide food for the poor, but create employment and cut down on expensive imports.




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