Home
/
RELIGION & LIBERTY ONLINE
/
Food prices: financial speculation is a red herring
Food prices: financial speculation is a red herring
Aug 10, 2026 5:27 AM

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
Access vs. aid: The economic promise of Africa’s new trade agreement
In battling poverty in the developing world, the West is often consumed in debates about foreign aid. Yet many of the core problems stem from more basic lack of access to the pond and opportunities create, participate, and collaborate therein.Last spring, in an effort to address those problems, 44 African leaders and government officials agreed to create theAfrican Continental Free Trade Area(AfCFTA), seeking to improve access to markets and bolster intra-Africa trading relationships across the continent. The participating countries have...
Book Review – Work: Theological Foundations and Practical Implications
“Work: Theological Foundations and Practical Implications”presents a thoughtful prehensive guide to the intersection of theology and work. The text’s contributors are made up of scholars from a variety of studies, including economics, church history, and theology, among others, who offer unique perspectives on work. In the introduction, editors R. Keith Loftin and Acton’s Director of Program Outreach, Trey Dimsdale, ask the question, “Why would anyone remain interested or indeed e interested in a religion that ignores nine-tenths of their life?”...
How missionaries have transformed the world
Despite the negative stereotypes, says Robert Woodberry, missionaries have effectively improved health, education, economic development, and political representation around the world—seemingly more effectively than government aid and secular NGOs: On average, people from countries that had one more Protestant missionary per 10,000 inhabitants 90 years ago currently have 1.5 years more education and 1.3 years more life expectancy. Similarly, for each additional year of Protestant mission activity, countries have $25.72 more GDP per capita on average. Even after rigorous attempts...
The Acton Institute awards 2018 Novak Award to Lucas G. Freire
Fr. Robert Sirico presented the Acton Institute’s 2018 Novak Award to Brazilian professor Lucas G. Freire on Monday, November 5. Freire’s acceptance speech offered reflections on the “idolatrous distortions” evidenced in modern public discourse by placing too much trust in the state, and too little faith in markets and individuals. He then presented insights from the Reformed tradition as expressed by Abraham Kuyper. Fr. Sirico personally handed Freire – an assistant professor at Mackenzie Presbyterian University in São Paulo, Brazil,...
6 Quotes: Billy Graham on patriotism and freedom
Today is the hundredth anniversary of the birthday of Billy Graham. Although he travelled the world as “God’s Ambassador,” the humble evangelist from North Carolina had a special affection for his own country. In honor of his birthday, here are six quotes by Graham on freedom and love of country: On the sacrifices of veterans: “The freedoms we enjoy, the freedoms we take so much for granted, the freedoms we so often trifle with were bought not by the gold...
C.S. Lewis on free will and the key to history
“What Satan put into the heads of our remote ancestors,” says C.S. Lewis, “was the idea that they could ‘be like gods’—could set up on their own as if they had created themselves—be their own masters—invent some sort of happiness for themselves outside God, apart from God. And out of that hopeless attempt e nearly all that we call human history—money, poverty, ambition, war, prostitution, classes, empires, slavery—the long terrible story of man trying to find something other than God...
Study: The opportunity costs of ‘soft socialism’
Democratic socialism is on the rise in America, inspired by Bernie Sanders’ 2016 presidential run and recent midterm victories by outspoken advocates such as Alexandria Ocasio-Cortez and Rashida Tlaib. But while the movement emphasizes “popular” vs. “state” control, glazing socialist rhetoric with democratic munitarian vocabulary, how different is the movement from socialist manifestations of the past? What might it portend for the future of the American economy and broader society? In a new report, “The Opportunity Costs of Socialism,”the Trump...
5 facts about veterans
Today is the official observance of Veterans Day, a U.S. public holiday set aside to thank and honor all those who served honorably in the armed forces both in wartime or peacetime. (Because the federal holiday falls on Sunday this year, the official observance is moved to Monday.) Here are five facts you should know about veterans in the United States: 1. The Veteran’s Administration estimates there are currently 19,998,799 living veterans (18,115,951 men and 1,882,848 women). Out of that...
Reframing the free trade argument
Historically, arguments for American free trade have often been criticized or met with skepticism. However, what would happen if these arguments were reframed to suggest the economic and political benefits free trade can offer? In a recent book review for Law and Liberty, Samuel Gregg seeks to answer this question and present others as he engages Pierre Lemieux’s book “What’s Wrong with Protectionism.” In “What’s Wrong with Protectionism” Lemieux presents several arguments for free trade that can be used in...
What you should know about structural unemployment
Note: This is post #101 in a weekly video series on basic economics. As we saw in the last video, some forms of unemployment—such as short-term, frictional unemployment—can indicate a healthy, growing economy. But what about persistent, long-term unemployment? When a large percentage of those who are considered unemployed have been without a job for a long period of time and this has been true for many years, it’s considered structural unemployment. Structural unemployment can result from shocks to an...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved