Tough news from Italy: the price of pasta is going to have to rise as a result of the current fashion for bio-fuels.
Seems that the farmers are grubbing up the spaghetti orchards to make room for the more profitable crops.
Spaghetti Price Rise
3 responses
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What do you expect, when it takes 10x more land to move the car than feed the driver.
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Quick: corner the market in the best vintages of spaghetti.
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But as the article points out, the likely effect is a roughly 10% rise in the price of dried spaghetti. In other words, the price of this good will rise from being essentially free to merely very, very cheap. A 10% increase in food costs across the board would have a nugatory impact on the standard of living of the average Western household. Where such increases are worrying is in the Third World: even a small rise in the cost of food can have a dreadful effect at the margin. If you’re spending 10 or 12 percent on food, this rising to 11 or 13% is negligible. But if you’re spending 60%, then a rise to 66% is potentially disastrous. And all because the Green Pharisees are making the world buy into their wicked fantasies.
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