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High Food Prices

Introduction
One of the things that keeps people alive is food. People need to eat in order to get vitamins and the necessary stamina. People die because of bad nutrition. Thus, food price is a issue that affects everyone. People are concerned whether the food is high or not. Unfortunately, food prices are rising up. Many causes are appointed as responsible. Nonetheless,this paper will not introduce why the food prices are going up, this paper will present evidence that prove that high food price is a huge problem and also it will show the effects caused.
Definition
The definition of the food crisis is simple. It is the increase in the cost of food. There are many different opinions about what causes this increase. Some say it is from a lack of supply, otherssay it is an increase in demand.
High prices of food can be felt by everyone. Also there are many explanation related to why the price of food is increasing. The first definition is based on an economical view. The demand for a good quality of food increased. Developing countries, such as India and China, are requesting more quality of food (Sultanova, 2008 & Chen, 2008). According to thoseauthors, developing countries have increased the global food demand and that has raised the prices. This can be explained by one of the basic economics fundaments. Whenever the demand is bigger than the supply prices go up. However, this definition is not a huge support for the idea that high food prices are a big problem because this problem is easily solved with an increase in the food production,which can be done by the market without any encouragement made by government. Whenever prices go up, this encourages production (O’Sullivan & Sheffrin, 2007). Thus, it would not be a serious problem.
The second definition found for the increase of food prices is climate changes, which are affecting the production of food. Appropriate weather is responsible for a good production of food. Therefore,climate changes, such as hurricanes, floods, and dried weather, affect the food supply (Chen, 2008). This is a problem because it directly affects the food production. Once the supply is damaged will be a lack to cover all food demand, raising the prices. Another cause of high price is related to supply. As Chen states in her papers and support by Sultonava “rising food cost is the result ofhigh-energy costs”. Prime cost is directly related to the final price. Pricing considers all cost of production (Dlabay, Burrow, Eggland, 2006). Thus, as soon as the basic cost rose the final price rose too. Therefore, when the supply is limited the problem becomes bigger because if the problem is just a high demand it can be solved with a bigger production. However, once the supply is limited theprices always will rise because the supply will not cover the demand, causing disequilibrium (O’Sullivan & Sheffrin, 2007).
Argument
Even though many people and economist support the first definition which states that the high price of food is just a difference between supply and demand and because this an increase in the food production would be enough. Thus, it is not a real problem. This paperwill be on the side of the second definition, which supports the idea that high prices of food are a huge problem. To support this idea evidences that show the effects in the population and in the economy will be shown.
Extreme Effects in Poor People
High price of food affects everyone. However, people that live under the poverty line or with a low budget to spend with food feel the biggestimpact. As Clemmitt M. stated (as cited in Sultanova,2008) “with 2.1 billion people worldwide living on less then $2 a day and another 880 million living on less than $1 a day, price increases of such magnitude have plunged hundreds of millions into malnutrition and starvation.” Sultanova and Clemmitts included this information to measure how big the problem is. Those data show us that many people...