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Energy is having an even greater supply crunch than food (indeed part of the food shortage is that agricultural inputs can't get delivered in adequate quantitie
by codefreeordie 4y ago
Energy is having an even greater supply crunch than food (indeed part of the food shortage is that agricultural inputs can't get delivered in adequate quantities because the energy to transport them doesn't exist).
The energy market is willing to outbid the food market, so I wouldn't expect the conversion of agricultural inputs into fuel outputs to decelerate.
- londons_explore 4y agoWhen people run out of money, they prioritize eating over electricity for the TV. Eventually, that effect should bring down the amount that energy companies want to pay for corn. But lots of people might starve first...
- codefreeordie 4y agoYes, but rich westerners will keep paying higher prices for gasoline while people in poor places get outbid for basic survival ration.
- dredmorbius 4y agoOP is speaking to the market level effective demand. Someone who's poor and starving will direct their own very limited economic purchasing power toward food. But the marketas a whole includes those who are wealthy (far fewer in number, but individually having vastly greater purchasing power), who might prioritise energy purchases generally. It's not the poor's own food-vs-energy deceisions, but poor-food vs. rich-energy, which are in play.