Chuck Darwin<p>Economist Isabella Weber suggests storing grain to prepare for next global emergency</p><p>Weber, who linked corporate profits to inflation, shares how to prevent food shortages <br />– and price gouging</p><p><a href="https://c.im/tags/Isabella" class="mention hashtag" rel="tag">#<span>Isabella</span></a> <a href="https://c.im/tags/Weber" class="mention hashtag" rel="tag">#<span>Weber</span></a>, who ignited controversy with a bold proposal to implement <br /><a href="https://c.im/tags/strategic" class="mention hashtag" rel="tag">#<span>strategic</span></a> <a href="https://c.im/tags/price" class="mention hashtag" rel="tag">#<span>price</span></a> <a href="https://c.im/tags/controls" class="mention hashtag" rel="tag">#<span>controls</span></a> at the peak of inflation <br />and identified corporate profits as a driver of high prices, </p><p>has proposed a new measure that could prevent food shortages and price gouging <br />in the wake of another disruption of the global supply chains.</p><p>Weber’s new paper, published on Thursday, looks at how grain prices spiked in 2022 <br />as Covid snagged supply chains and Russia invaded Ukraine. </p><p>The price hikes helped to drive record profits for corporations <br />while pushing inflation higher and increasing global hunger. </p><p>In the paper, Weber and colleagues call for the creation of ⭐️buffer stocks of grain ⭐️that could be released during shortages or emergencies to ease price pressures.</p><p>Such a system would quell the volatility that is a hallmark of the grain market and keep food prices down, <br />said Weber, the paper’s lead author and an associate professor at the University of Massachusetts.</p><p>“Literally 👉the worst of times for global hunger seem to be the best of times for the companies managing the global trade in food staples👈,” Weber said. </p><p>“It might seem utopian in the current environment, but there is such clear benefit in terms of economic stability that it’s not as utopian as it seems.”</p><p>Weber’s previous work on <a href="https://c.im/tags/inflation" class="mention hashtag" rel="tag">#<span>inflation</span></a> went viral after the Guardian published her opinion piece. </p><p>Her views were pilloried by some leading economists and rightwing media <br />but have since gained support from policymakers and other economists.</p><p>A new entity proposed by Weber and her co-author, <a href="https://c.im/tags/Merle" class="mention hashtag" rel="tag">#<span>Merle</span></a> <a href="https://c.im/tags/Schulken" class="mention hashtag" rel="tag">#<span>Schulken</span></a>, would work similarly to how the <a href="https://c.im/tags/Biden" class="mention hashtag" rel="tag">#<span>Biden</span></a> administration has wielded the 🔸Strategic Petroleum Reserve 🔸to try to limit price spikes and collapses in the oil market. </p><p>When demand for oil is strong and prices climb, the government can use its oil reserves to help bring prices down. </p><p>When demand is weak and prices fall so low that pumping more oil becomes unprofitable, the government buys and stores barrels in its reserve.</p><p>In effect, 💥a grain reserve could set a ceiling on prices to protect consumers, 💥while establishing a floor to shield farmers when grain prices collapse.</p><p><a href="https://www.theguardian.com/science/article/2024/jun/20/global-emergency-preparation-food-storage-grain?CMP=Share_iOSApp_Other" target="_blank" rel="nofollow noopener noreferrer" translate="no"><span class="invisible">https://www.</span><span class="ellipsis">theguardian.com/science/articl</span><span class="invisible">e/2024/jun/20/global-emergency-preparation-food-storage-grain?CMP=Share_iOSApp_Other</span></a></p>