The developed world reached a general consensus that GMOs (Genetically Modified Organisms) are harmful and should be discouraged, with counties in California banning it outright, and many other counties and countries calling for the same. In 2006 the EU halted importation of US rice exports because of “unacceptable modification.”

In 2006, in order to stymie the US’s “addiction to oil,” a plan was enacted for biofuels to replace 75% of imported fuels by 2025. These biofuels are not cost-effective without huge government subsidies, so 200 different subsidies were enacted to stimulate biofuel production.

While the developed world is caught up in its credit woes, the prices of staple foods, such as rice, maize and wheat, have been increasing substantially. Because GMO growth has been stopped, there is a shortage of food; and because we subsidize biofuels, fewer farms are producing these staples for food consumption. While we Americans lick our subprime wounds, the developing world is starting to face its worst bout with “Agflation” in 30 years. Riots due to food price increases have already been occurring in Haiti, Egypt and Bangladesh and are sure to spread.

The United States subsidizes its farmers to the tune of $200,000 each per year, albeit disproportionately (the richest 1.3%, or the big multinationals receive 40% of these while the bottom 85%, or the local farmers, receive 1.16% of these), in order to produce the wrong crops. The European Union spends over 50% of its budget to do the same with its farmers.

There have been fewer clear cut examples of where the government should step away and let free markets find their own equilibrium. Finding the politician willing to admit that, however, will be difficult indeed.