"System change is now inevitable. Either because we do something about it, or because we will be hit by climate change. '...

"We need to develop economic models that are fit for purpose. The current economic frameworks, the ones that dominate our governments, these frameworks... the current economic frameworks, the neoclassical, the market frameworks, can deal with small changes. It can tell you the difference, if a sock company puts up the price of socks, what the demand for socks will be. It cannot tell you about the sorts of system level changes we are talking about here. We would not use an understanding of laminar flow in fluid dynamics to understand turbulent flow. So why is it we are using marginal economics, small incremental change economics, to understand system level changes?"

Monday, April 28, 2008

No Food Shortage

There is a food pricing crisis, but that isn't the same as a shortage. I elaborate on Grist.

In short, I conclude that the wider the separation of rich and poor, the less effective market mechanisms are in providing useful incentives and the more necessary complex regulatory systems become.

The market libertarians want it both ways: minimal regulation and no worry about wealth stratification, but recent events in the global food market indicate that you can't have both and a viable planet too.

Comments disallowed here so I don't have to track two threads. Do comment on the Grist site, please and thanks.