Scarcity in an Age of Plenty

As food and fuel prices continue to increase the world must look to new patterns of consumption and production

by Joseph Stiglitz

Around the world, protests against soaring food and fuel prices are mounting. The poor — and even the middle classes — are seeing their incomes squeezed as the global economy enters a slowdown. Politicians want to respond to their constituents’ legitimate concerns, but do not know what to do.

In the United States, both Hillary Clinton and John McCain took the easy way out, and supported a suspension of the gasoline tax, at least for the summer. Only Barack Obama stood his ground and rejected the proposal, which would have merely increased demand for gasoline — and thereby offset the effect of the tax cut.