<p>That the market for food clears unfortunately doesn't mean that everybody gets (enough of) the food offered on this market; it just means that the price for food adjusts in such a way that supply equals demand. In equilibrium, excess food supply is zero. If a person's &quot;willingness to pay&quot; (which is often actually an ability to pay) for a meal is lower than the market clearing price, then this person will stay empty handed.</p>
<p>If prices <em>should</em> come down is a moot question, because in a competitive market they simply <em>will not</em> come down. If a regulator tried to cap the market price, then the poor might be able to afford buying food if it were supplied, but at very low prices almost no firm would supply it.</p>

CC BY-SA 4.0
2024-09-24T09:01:53.053Z
2024-09-24T09:01:53.053Z
VARulle
<p>Producing food is not cheap, it requires investment in land, seed, fertilizer, equipment, fuel, farmer's labor, processing, distribution, etc.</p>
<p>Thus, for food production to be sustainable, farmers (and everybody else in the supply chain) must be compensated for their expenses and risks in the amount of $price.</p>
<p>If person is unemployed and has $0 - they won't be able to purchase food, but that doesn't make them entitled to get free food from the farmer.</p>
<p>If farmer gives away food for free, it is lost revenue from his pocket he could have made by exporting such food overseas. Thus, somebody has to compensate farmer for food. The famous quote that there is no such thing as free stuff - just somebody else paid for it.</p>
<p>In the US there is mechanism of social net for poor people: food stamps, welfare system, some refundable tax credits.</p>
<p>Thus money is takes away from productive population via taxes and given away to poor population in form of stamps and welfare services.</p>
<p>The solution for poor people is to find ways to earn enough $$$ to sustain themselves, either through labor (working more hours or finding a better paying job) or transfers (relying on charity from others or state welfare system).</p>

CC BY-SA 4.0
2024-09-25T02:04:10.920Z
2024-09-25T02:07:00.603Z
2024-09-25T02:07:00.603Z
slt_omz
<p>We produce enough food to feed 10 billion people, yet millions starve to death every year.</p>
<p>Shouldn't prices come down such that the excess food supply can be sold to the poor or given away nearly for free?</p>
<p>The United States produces enough food to feed itself, yet food insecurity is a major issue (1 in 7 American adults is food insecure)</p>

CC BY-SA 4.0
2024-09-25T02:38:24.013Z
Why do millions of bachelors linger in solitude every year even though enough single females are around for them to take as romantic partners every year?
Herr K.
CC BY-SA 4.0
2024-09-25T22:17:09.733Z
@HerrK because modern PC games make the solitude too much fun? ;p
1muflon1
CC BY-SA 4.0
2024-09-26T00:18:18.767Z
@1muflon1: lol didn’t expect that for an answer
Herr K.
CC BY-SA 4.0
2024-09-26T08:12:53.090Z
@HerrK. Because teaching of the Gale–Shapley algorithm is tragically neglected in high school.
VARulle
<supply-and-demand><markets><food><artificial-scarcity>
If markets clear, then why do millions of people starve to death every year even though enough food to feed the world is produced every year?
anonymous_inquirer
# If markets clear, then why do millions of people starve to death every year even though enough food to feed the world is produced every year?

(Asked by: username_0 on 2024-09-24)

We produce enough food to feed 10 billion people, yet millions starve to death every year.

Shouldn't prices come down such that the excess food supply can be sold to the poor or given away nearly for free?

The United States produces enough food to feed itself, yet food insecurity is a major issue (1 in 7 American adults is food insecure)

**Tags:** supply-and-demand, markets, food, artificial-scarcity

> **Comments:**
> **username_1**: Why do millions of bachelors linger in solitude every year even though enough single females are around for them to take as romantic partners every year?  
> **username_2**: @HerrK because modern PC games make the solitude too much fun? ;p  
> **username_1**: @username_2: lol didn’t expect that for an answer  
> **username_3**: @HerrK. Because teaching of the Gale–Shapley algorithm is tragically neglected in high school.  

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## 2 answers

### Answer by username_3 on 2024-09-24. Score: 3

That the market for food clears unfortunately doesn't mean that everybody gets (enough of) the food offered on this market; it just means that the price for food adjusts in such a way that supply equals demand. In equilibrium, excess food supply is zero. If a person's "willingness to pay" (which is often actually an ability to pay) for a meal is lower than the market clearing price, then this person will stay empty handed.

If prices *should* come down is a moot question, because in a competitive market they simply *will not* come down. If a regulator tried to cap the market price, then the poor might be able to afford buying food if it were supplied, but at very low prices almost no firm would supply it.


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### Answer by username_4 on 2024-09-25. Score: 2

Producing food is not cheap, it requires investment in land, seed, fertilizer, equipment, fuel, farmer's labor, processing, distribution, etc.

Thus, for food production to be sustainable, farmers (and everybody else in the supply chain) must be compensated for their expenses and risks in the amount of $price.

If person is unemployed and has $0 - they won't be able to purchase food, but that doesn't make them entitled to get free food from the farmer.

If farmer gives away food for free, it is lost revenue from his pocket he could have made by exporting such food overseas. Thus, somebody has to compensate farmer for food. The famous quote that there is no such thing as free stuff - just somebody else paid for it.

In the US there is mechanism of social net for poor people: food stamps, welfare system, some refundable tax credits.

Thus money is takes away from productive population via taxes and given away to poor population in form of stamps and welfare services.

The solution for poor people is to find ways to earn enough $$$ to sustain themselves, either through labor (working more hours or finding a better paying job) or transfers (relying on charity from others or state welfare system).


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