By Kevin D. Williamson
Wednesday, February 22, 2017
Answer: California, Iowa, Texas, Nebraska, Minnesota,
Illinois, Kansas, North Carolina, Wisconsin, and Indiana.
Question: Whatever happened to world hunger?
World hunger is in dramatic decline. As our friends at
HumanProgress.org reported over the summer, the hunger indicators are all
moving in the right direction: Fewer people are going hungry, both in absolute
numbers and as a share of the world’s population; hunger has fallen
dramatically in China after a program of partial economic liberalization; those
people around the world who are underfed are less underfed than they were a
decade or two ago, with their average daily calorie deficits down to about 85
calories — just 1.5 McNuggets short of a full day’s nutrition; and world food
prices are down steeply, having fallen by half in real terms over the past
century.
The USDA reported on Tuesday that world wheat production
is expected to hit a record high this year, and that U.S. producers will export
— not produce, but export — more than 1 billion bushels of the stuff. Export
projections are up 50 million bushels since January, driven higher by large
orders from China.
Trade with China may stink if you are an aspiring
manufacturer of flip-flops or plastic toys, but it is making you rich if you
are a farmer in Nebraska. Nebraska’s biggest export is beef. In fact,
Nebraska’s two biggest exports are beef, according to the federal government’s
statistics (fresh and frozen “meat of bovine animals” are separate categories),
and a great deal of that beef goes to Hong Kong. And the Chinese are especially
hungry for Nebraska’s third-largest export: soybeans. China is hungry for
soybeans from Illinois, Iowa, Minnesota, and other big soybean-producing
states, consuming half of U.S. soybean exports. Despite its heavy reliance on
U.S.-produced meat and soybeans, there isn’t really a Chinese campaign for
“protein independence,” just hungry people with cash in their pockets looking
for the best product at the best price.
Tourists used to enjoy visiting the New York Stock
Exchange, back before it was a fortified bunker. It gave them a thrilling
impression of the hustle of Big Business. But if you really want to see the
best of real capitalism in action — capitalism as it actually exists in the
world, not the capitalism of theory — then you should visit three places: a
German automobile factory, an American farm, and the Port of Los Angeles, which
handles about 165,000 automobiles a year and 8 million tons of food.
That’s a lot of food.
No, really: That is a lot of food.
The United States, in fact, produces about twice as much
corn as the No. 2 producer, China, and about five times as much as the No. 3
producer, Brazil. And we produce a lot of everything: wheat, potatoes, beef,
pork, chickens, eggs, rice, cotton, vegetables, sorghum, maize, animal feed —
everything.
Another way of looking at the question is to consider
agricultural exports. The United States exports far more farm produce than any
other country, nearly twice the amount of big agricultural powers such as
Brazil, France, and Germany. (Funny little quirk: Tiny Netherlands is the
world’s No. 2 agricultural exporter, shipping out products with a dollar value
equal to about two-thirds of that of the United States: A ton of fresh flowers
costs a lot more than a ton of soybeans.) It is not as though the rest of the
world doesn’t know how to farm or doesn’t have arable land and water. And it is
not as though Nebraska soybeans enjoy some sort of special cachet, like French
wine — soybeans are pretty much soybeans. American farmers are just better at
producing them.
Which is why, while all those unhappy 26-year-olds with
MFAs in creative writing are pissing and moaning about the state of the world,
American farmers are getting rich. According to the USDA, 97 percent of U.S.
farm households are both high-wealth and high-income, meaning that they score
above the national median on both counts. But that doesn’t quite capture it.
American farm households own, on average, more than $800,000 in wealth. And if
you focus on real farmers — which is to say, families operating commercial
agricultural operations — you have an average household wealth of $2.5 million.
Yes, net worth is different from gross wealth, but the average debt of a farm
family is only about $72,000, not very much in comparison with the average
wealth. As the colorful investor Jim Rogers told National Review a few years back: “If you want to drive a
Lamborghini, learn to drive a tractor.”
This is, for better and for worse, how it is supposed to
work: Poor people get to eat, farmers get paid and maybe buy a German sedan to
go along with that Ford truck, the guys loading and unloading the ships in San
Pedro make a nice wage — prosperity. And you know what a commercial farm in
Iowa, a Mercedes factory in Stuttgart, and the Port of Los Angeles all have in
common? They are miracles of automation, extraordinarily effective engines of
prosperity in industries that — because they are healthier than they once were
— employ fewer people than they once did. Some people, mainly for reasons of
nostalgia and complete lack of familiarity with actual assembly-line work,
still romanticize working in an automobile factory. Not many people dream of
growing up to be stevedores or soybean magnates. And, that’s okay: It’s a big
world and a big market — big enough to accommodate all sorts of dreams and
aspirations.
Not long ago, the great dream and aspiration of most of
the people walking this Earth was to have enough to eat, for themselves and for
their children, and to be liberated from worrying about whether they would eat
again tomorrow or the next day. Capitalism can be a great deal of work, but it
works if you let it work.
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