Home
/
RELIGION & LIBERTY ONLINE
/
Food prices: financial speculation is a red herring
Food prices: financial speculation is a red herring
Jun 18, 2026 5:29 PM

The discussion is certainly on-going among the 220 opinion leaders who attended and spoke at Acton’s December 3 Rome conference In Dialogue with Laudato Si’: Can Free Markets Help Us Care for Our Common Home?

The Institute’s Rome officehad hoped that the “dialogue” would continue well past the conference itself – within the Vatican, its pontifical universities and mass media – afterheated discussion erupted over what is magisterium and debatable opinion in encyclical letters. When discussing environmental issues treated by Francis in Laudato Si’, questions focused especially on technical matters related to economics and the material sciences as well as calling into questionthe expertsecular counsel the Vatican often seeks to inform itself in areas of prudential judgment.

One of the panelists invited to the debate, economist Philip Booth of England’s St Mary’s University and Institute of Economic Affairs, was particularly outspoken about the pope’s owncriticism of the financial industry and so-called manipulation of global food prices.

Following the conference, Boothpublish an op-ed based on his controversial conference lecture “Commodity Speculation: Part of an Economy that Kills?” titledFood Prices: Financial Speculation is a Red Herring.In his article, Booth writes,

Pope Francis has frequently described the present global financial system as an “economy that kills”. He often specifically criticises speculation on food prices. Addressing the UN this year, he said: “Beginning in 2008 the trend of food prices has changed: doubled, then stabilised, but always with higher figures parison to the preceding period… We cannot overlook financial speculation: for example, the high prices of wheat, rice, corn, soy, which fluctuate on the stock market, perhaps they are linked to profits and, therefore, the higher the price the greater the profit.”

Yet wheat prices today are more or less the same as in 2005, 1995 and 1985. In real terms, food prices have been falling for a long time. It is factually incorrect to say that their prices always stabilise at higher levels. And it is difficult even to think of a mechanism by which prices can be driven ever higher by speculation. There are two sides to any trade. One side benefits from the price going up and the other side benefits from the price going down. There is no net gain to speculators from prices going up, just a different distribution of gains.

It is worth noting in passing that the system that Francis calls an “economy that kills” is responsible for the most rapid reduction in poverty and the fastest increase in life expectancy that the planet has ever known. Global inequality has fallen too. But the growth of free trade, which has linked a large number of previously very poor countries to global markets (and often protected them from localised harvest failures), has also led to a huge increase in cross-border finance which can be linked to speculation modities.

It is worth noting in passing that the system that Francis calls an “economy that kills” is responsible for the most rapid reduction in poverty and the fastest increase in life expectancy that the planet has ever known. Global inequality has fallen too. But the growth of free trade, which has linked a large number of previously very poor countries to global markets (and often protected them from localised harvest failures), has also led to a huge increase in cross-border finance which can be linked to speculation modities.

Continue reading Philip Booth’s article

Opinion leaders and academics filled the Pontifical University of the Holy Cross Aula Magna on Dec. 3

Comments
Welcome to mreligion comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
RELIGION & LIBERTY ONLINE
The Bishop’s Candlesticks: Immigration, Refugees, and Justice
The media is buzzing with chatter about immigration and the heartbreakingrefugee crisis in the Middle East. Yet even as we learn more about the types of suffering and oppression that these people are fleeing, the temptation to look inward remains. All of these cases involve a range plex considerations, to be sure. But in a nation as big and as prosperous as ours, we shouldfind it easier than most toerr on the side of ing the stranger. Further, as citizens...
5 Facts About the U.S. Constitution
Constitution Day is celebrated in America every year on September 17, the anniversary of the day the framers signed the document. Here are five facts you should know about the U.S. Constitution. 1. The Constitution contains 4,543 words, including the signatures and has four sheets, 28-3/4 inches by 23-5/8 inches each. It contains 7,591 words including the 27 amendments. It is the oldest and shortest written Constitution of any major government in the world. 2. Thomas Jefferson did not sign...
The Bright Side of Sharia Law
Why aren’t church leaders who are so quick to condemn capitalism, asks Rev. Jerry J. Pokorsky in this week’s Acton Commentary, decrying Big Government bureaucracy? The warnings of recent papal teachings on questions of social justice rarely – if ever – identify the dangers of a highly bureaucratized central government. Apparently most of the sinful and corrosive “love for es from private sector capitalists, not government public sector agencies. Certainly corporate capitalistic greed can and does have serious economic consequences....
Politics, the Pope, and the Public Square
I have some brief thoughts up at Think Christian today about Pope Francis’ ing visit to the United States. Instead of worrying about policy proposals that many are hoping Francis will address directly, or will at least provide an excuse for them to bring up, I focus onthe power ofthe image of the Roman pontiff ascending the steps of Capitol Hill. “When the pope speaks in Congress, religion has undeniably entered the public square,” I write. Now I have had...
The Jewish roots of freedom
Morning Panel at “Judaism, Christianity, & the West.” On September 9, leading scholars of the world came together to discuss the ways in which Judaism and Christianity have contributed to building the foundations of liberty. “Judaism, Christianity, and the West: Building and preserving the institutions of freedom” was the fourth conference in the “One and indivisible? The relationship between religious and economic freedom” conference series. Sponsored by the Acton Institute and the Jerusalem Institute for Market Studies, this day-long event...
Institutionalized: Locked in the Welfare Stated:
The film The Shawshank Redemption is already a classic. Based on a novel by Stephen King, it tells the friendship story between two inmates from the most disparate walks of life who are bonded by their dreams of freedom (indeed, in Argentina, the film was titled Sueños de libertad –Dreams of Freedom). For what we are about to say, the plot (which the reader may find in the Internet) is not relevant. What concerns us here is this: at a...
Audio: Samuel Gregg On Pope Francis And The Market Economy
Pope Francis has described himself as having an “a great allergy to economic things,” admitting that he doesn’t understand it very well. Does this “allergy” cause him to miss the good that the market economy has done and can continue to do for the world’s poor? Acton Institute Director of Research Samuel Gregg examined that question today with host Hoppy Kercheval on Talkline on the West Virginia MetroNews radio network. Gregg discusses the impact that the market economy has had...
My Response to Rolling Stone Magazine’s Claim that Pope Francis is Taking on ‘Conservative U.S. Clerics’
RS cover from 2014On Sept. 10, Rolling Stone magazine published a long article titled “Pope Francis’ American Crusade — The pope takes on climate change, poverty and conservative U.S. clerics.” From the title alone you could tell where this was headed. Predictably, the magazine asserted that “deeply alarmed by the power of Francis’ message, an entire network of -right-wing Catholic organizations has been increasingly willing to push back against the Vatican.” In ticking off members of this “network” it said...
Why the Poor Should Be Able to Scalp Their Tickets to See Pope Francis
Last week, 80,000 residents of New York got a free gift: a ticket to see Pope Francis’s procession through Central Park on September 25. Not surprisingly, soon after the tickets started showing up for sale on websites like eBay and Craigslist for hundreds and even thousands of dollars. Also not a surprise is the disgusted reaction some people had to news abouttheticket scalping: “Tickets for events with Pope Francis are distributed free for a reason — to enable as many...
Let’s Listen for ‘Cry of the Poor’ before the ‘Cry of the Earth’
When governments have followed the sort of environmental and free-market admonitions Pope Francis gave us in Laudato Si, negative results often follow. This struck your writer this past week as he read a piece reporting the unforeseen consequences of one specific wrongheaded environmental effort. In his encyclical, Pope Francis writes: Today, however, we have to realize that a true ecological approach always es a social approach; it must integrate questions of justice in debates on the environment, so as to...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved