WASHINGTON -- Those of us who dimly remember the gas lines of the
1970s tend to view commodity price spikes as the temporary work of
international villains. But anyone still expecting the return of cheap oil
is in for a long wait. Rising energy prices are mainly the result of
unprecedented global prosperity -- a rising billion in China and India
determined to own automobiles and air conditioners. This increased demand
for oil, natural gas and coal has almost nothing to do with the policies of
America or the designs of OPEC.
Given the strain on household budgets, it impossible to call this a
blessing, even a mixed one. But it might properly be called a mixed curse.
During the 1992 campaign, some Democrats proposed a controversial
50-cent-a-gallon increase in the gas tax in order to reduce domestic
consumption and encourage alternatives to oil. Since then, gas prices have
risen by more than $3 a gallon, resulting in individual suffering and
aggregate benefits. Alternatives to oil and coal -- from wind to solar to
nuclear -- are suddenly more economical in comparison. Chevrolet and Toyota
are only a couple of years away from offering plug-in hybrids that could
average hundreds of miles to the gallon.
But our other demand-driven crisis -- food inflation -- is simply a
curse since there is no pleasant alternative to eating. This problem has a
variety of causes: the growth of meat-based diets across the world,
requiring large amounts of grain for animal feed; the diversion of acreage
to the production of ethanol; the rising cost of food transportation and
natural gas-based fertilizers; water shortages and climate disruption.
Recent prices have dipped a bit, but expensive food now seems a fact of
life.
On the fringes of subsistence in the developing world, sudden
double-digit jumps in the prices of staples have resulted in riots. In
America, a rise of about 6 percent in the price of groceries this year has
led the poor to adopt a variety of survival strategies, from buying food
beyond its expiration date to visiting food banks.
The president and Congress cannot be accused of indifference. Funding
for nutritional programs at the Department of Agriculture has increased by
more than 60 percent during the Bush years. In its recent farm bill (while
expanding American agricultural subsidies that do staggering harm to
farmers in the developing world), Congress helpfully increased funding for
American food banks and food stamps. It also renamed the Food Stamp Program
the Supplemental Nutrition Assistance Program, on the theory that boring
bureaucratic names with annoying acronyms (SNAP) bear less stigma for
recipients.
Expanding food stamps is the most direct way to reduce hunger in
America. There are about 35 million Americans who experience food
insecurity, and about 25 million who receive food stamps -- really debit
cards that can only be used for food (not sold for cash or used for
alcohol). Both the Clinton and Bush administrations have cut fraud in this
program. And because this system is computerized, we also know that most
benefits are used up by the third week of the month, leaving many families
to scramble for other sources of food.
Hunger exacts a social cost. Hungry adults miss more work and consume
more health care. Hungry children tend to be sicker, absent from school
more often, and more prone to get into more trouble. Larry Brown of the
Harvard School of Public Health calculates that the total price tag of
hunger to American society is about $90 billion a year. In contrast, Brown
estimates it would only cost about $10 billion to $12 billion a year to
"virtually end hunger in our nation."
And this raises a moral issue. We have in place an automated food
stamp program that is generally efficient and effective. We know it could
be expanded with little increase in overhead. And we know with precision
when its benefit runs out each month. So how is it then possible to justify
funding three weeks of food instead of four? What additional dependence,
what added moral hazard, could a full month of eating possibly create?
Many social problems seem complex beyond hope. But dramatic progress
against hunger is not. There are many explanations why this effort has not
been undertaken -- but there are no good excuses. |