Millions Face Poverty Increase from Capitalism
According to an article by the BBC, the World Bank is warning that food prices are close to pushing millions more into extreme poverty. The world capitalist system has not only been starving millions since 2008, but it’s inability to provide the basics of human life. Since last June an additional 44 million more people have been pushed into poverty.
A further 10% rise would push 10 million more below the extreme poverty line of $1.25 a day, the bank said.
And it warned that a 30% cost hike in the price of staples could lead to 34 million more poor.
The World Bank estimates there are about 1.2 billion people living on less than $1.25 a day.
The World Bank says prices of basic commodities remain close to their 2008 peak, with the prices of wheat, corn and soya all rocketing.
The only exception is rice, which has fallen slightly in price in the past year.
World Bank president Robert Zoellick said: “More poor people are suffering and more people could become poor because of high and volatile food prices… We have to put food first and protect the poor and vulnerable, who spend most of their money on food.”
This situation is being exacerbated by the increased cost in fuel. The main cause is global climate change that has had sever effects on food production world wide. In Latin America heat waves have caused a dramatic drop in gain production and the production of vegetables. In Venezuela this is even causing a loss of electricity from hydroelectric generation from the resulting drought. In Russia grain production has dropped so much that exports have been placed under restrictions and reserves have been opened up in order to stabilize the supply and its price.
This is only a few examples of what has been happening world wide.
As the supply of food further dwindles, the market demands that the cost of food rise in the fictional law of “supply and demand”. As food is becoming more and more scarce, as more and more people are finding it difficult to get enough food to eat; the market demands that the food become even more expensive and leave the financial reach of millions more. As starvation is increasing, the laws of capitalism demand that millions more starve unnecessarily. All this because food is produced for profit and not human need.
This situation displays clearly the need for a socialist distribution of food in order to preserve human life. This also shows the correctness of the collectivization of agriculture and grain seizures by former Soviet leader Joseph Stalin. Then as now, the supply of food has fallen short of human need, the market has failed to provide enough food. Just like then the market is pushing up the price as farmers of the past were withholding grain in order to increase the price they could get. In both cases the profit motive is taking life threatening conditions created by poor weather and making the situations worse.
The survival of the human race, now more than ever depends on the socialist distribution of food and resources. This can only happen through revolution, a revolution overthrowing the ruling class, imperialism and its running dogs.