25 Jul 2012

Drought scarcity and shortage

The US is "in drought" according to one definition or another, but damages will result from (1) massive losses in corn and soybeans that are the result of farmers trying to make as much as possible from ridiculous subsidies and (2) too many people living in hot places with "cheap" water.*

Those are US impacts, but I worry about the drought's impact on food supplies and world food prices and the suffering and social instability that will result.

Bottom Line: The end of abundance means we cannot count on cheap water everywhere.
* This article compares the current drought to worse conditions in the 1930s; Env-Econ discusses the drought, Krugman, etc.

H/Ts to SJ and DL