tag:blogger.com,1999:blog-7169279.post810469296331562935..comments2023-11-24T03:20:02.361-07:00Comments on Tufte's Economics Classes Blog - A Living Textbook: Wheat Prices On the RiseDr. Tuftehttp://www.blogger.com/profile/17397586052171706438noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-7169279.post-43666879156048316462008-04-20T09:27:00.000-06:002008-04-20T09:27:00.000-06:00I think what we are seeing is a very mild replay o...I think what we are seeing is a very mild replay of the 1970's. Then and now share three things. <BR/><BR/>1) Negative supply shocks to oil (bigger in absolute size now, but relatively less important because we are less dependent).<BR/><BR/>2) A typical Keynesian response to all problems by "caffeinating" aggregate demand. The Democrats don't want to do anything different (even as different as Dr. Tuftehttps://www.blogger.com/profile/17397586052171706438noreply@blogger.comtag:blogger.com,1999:blog-7169279.post-13036444184868865102008-03-31T22:43:00.000-06:002008-03-31T22:43:00.000-06:00I disagree somewhat with Gavin and Jordan. The ma...I disagree somewhat with Gavin and Jordan. The market for grain is more complex than that. There are other supplies, or lack thereof that come into play. We do have a lot of land in our country, but it is a finite resource, not all of it is arable land. We also have a disturbing penchant in our society for putting houses and other developments on prime agricultural land. More to the point, Brianhttps://www.blogger.com/profile/18185217124851947834noreply@blogger.comtag:blogger.com,1999:blog-7169279.post-59872544636222772292008-03-28T12:01:00.000-06:002008-03-28T12:01:00.000-06:00I also think that the situation will correct itsel...I also think that the situation will correct itself. High wheat prices will induce farmers to utilize more land, bringing wheat supply and prices back to a lower equilibrium.Jordanhttps://www.blogger.com/profile/06334144632643811762noreply@blogger.comtag:blogger.com,1999:blog-7169279.post-34832392512668420142008-03-27T14:07:00.000-06:002008-03-27T14:07:00.000-06:00There is an abundance of farm land that can be con...There is an abundance of farm land that can be converted to wheat production in the United States. In time, the incentive of high profits will cause farmers to switch from other crops to wheat, which will increase supply. Once supply catches up with demand we should see prices come back to normal.Gavinhttps://www.blogger.com/profile/04581522223831636340noreply@blogger.comtag:blogger.com,1999:blog-7169279.post-19835686268432638552008-03-15T14:49:00.000-06:002008-03-15T14:49:00.000-06:00It’s a troubling sign when food supplies are poten...It’s a troubling sign when food supplies are potentially endangered not by natural disaster or environmental issue, but by the government established for the people and by the people. I hope we see a time when Americans as a whole are willing to allow the market to function properly and take what comes; both the good times and the bad times. Of course, that would require sacrifice and change, asOliviahttps://www.blogger.com/profile/05629674883806515987noreply@blogger.com