What the cause for the soaring food and fuel costs?

Question

why is it, everyone seem so sad when talk on this topic? why is it the increase fuel affect the increase of all prices?

Answer 1

Food and all other goods require fuel to be transported and it takes fuel to run machinery and farm equipment. Corn is used to feed livestock. There has been a push toward using corn ethanol lately in the U.S.. As the cost of oil and gas goes up, there is more pressure for there to be a higher production of corn for ethanol production.

Sometimes, wheat crops, bean crops, and so forth have been substituted by corn due to take advantage of the higher price of corn. This contributes to a decrease supply of all types of food leading to the higher food prices. That's one reason my Frosted Mini Wheats are so expensive now.

With rice, it is just a matter of very quickly growing demand for rice in rapidly developing countries like China, India, and other growing nations like Indonesia and Korea.

People get sad when they talk about issues like this is because they resort to depending on their emotions, as opposed to rational thinking, they will say it is because they care more though.

Answer 2

A war of the members of the human body, I think as the bible terms this. Human nature at work because we know the ending is near of a natural supply of oil. A gigantic apprehension of fear that we will be forced to raise up from our lazy "buts" and turn off the coffee pot, and pedal our way to work.

Answer 3

The main reason is the decreasing value of the dollar . There is some manipulation by those who seek to make up there losses from the devaluation of the dollar .

Answer 4

The amerikkkan imperialists goverment has failed or underestimated iraq. Middle easterners have much pride and will  fight you to the death. When was the last guriella war usa has won? So now the Middle East has the leverage on the whole world, since they have 2/3's of the world's oil reserves they can charge what they want!

As for food prices. There are droughts and famines. So that means shortage of foods. Really, these are the end times. A change or shift in the universe is happening right before our eyes. Get right with the creator, and you shall not perish.

Answer 5

Increasing fuel prices are caused/legitimized by:

1. Iraq War

2. National Debt

3. Inelasticity of demand

How?

1. The war decreases stability in the middle east and so reduces the supply of oil that way, but also in the depletion of national stores to fuel the efforts overseas

2. With the rapidly increasing debt, other countries begin to doubt our ability to ever pay off that debt and so become less inclined to foot the bill. This contributes to the devaluation of the dollar and thus inflation

3. At this time people NEED to use fossil fuels for transportation, shipping, and manufacturing. This means that no matter what we are charged, we will pay it because we can't afford to not shift people, things, and manufacture products.

With the increased fuel costs, it is more expensive to produce foods, process foods, and ship them, those costs are passed on to the stores, and from there to the consumer.

People are sad about this because we can't really do anything about it quickly. We are working on alternative fuel sources but there is only so much we can do with that, and us Californians will not accept off-shore oil drilling because we are not willing to risk the destruction of an ecosystem so people can drive hummers in the middle of a city. Same thing in Alaska.

Answer 6

It takes a lot of high-priced fuel to farm land, process the food in the factories, and transport it to the grocery stores.   It takes a lot of money for people in the business world to travel around to different parts of the globe and country to negotiate contracts or purchase new products for sale and when the cost to travel goes up, the cost to make their products goes up and their factories have to pay more energy costs to make it and they pass the cost on to people who buy the things they make.

Answer 7

It all comes back to fuel pirces being raised by the mideast-its getting expensive so transport is more costly, running the machines etc. and it gas to come back to us. Also people are turning to corn based ethanol-trading food for fuel. You can see where im going.