Many Mouths to Feed
Those that live in poverty spend differently than those with a higher income. In general, poorer individuals have a higher marginal propensity to consume and spend a majority of their income on food. The ability to afford food provides greater health and well being. Poorer countries often use subsidies to make food prices artificially low, but governments may find that subsidizing food costs for buyers can have significant benefits. Subsidizing food costs can push the supply or demand side of the market. When food subsidies go to farmers supply is pushed out; when they go to consumers, demand shifts out. Continue reading Many Mouths to Feed