Corn and Geopolitics in the United States

Corn and Geopolitics in the United States

January 18, 2011

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Introduction

The geopolitics of United States are heavily influenced by corn and other commodity foods (For simplification purposes the word “corn” will encompass soy, wheat, and other industrial food commodities). Although the concept may seem odd this short introduction to the corn industry will illustrate the importance of food in America.

Source of Success

The foundation of the United States lies in the geography of the nation. The two geographic elements that dictate the natural wealth of a nation are water transportation and large agricultural production. Moving large volumes of products over water is the most cost effective method of transportation. Large river networks allow goods to be moved from the heart of the US to international markets at a cheap rate. Deep water ports also play a major factor in allowing US products to be shipped. The east and west coasts of the US are blessed with ample deep water ports while the interior of the US is home to the worlds largest river network. The effect is the US spends much less on infrastructure compared to nations without river networks or deep water ports.

The other major source of geographic wealth stems from large tracks of prime agricultural land. The American Mid-West is the worlds largest area of food production. Ample water and sun mixed with rich and deep soil makes the farming very cost effective. In addition, food products are easily moved on the large river networks of the Mississippi, Missouri, and Ohio Rivers. The natural geographic advantages are the foundation of American wealth and power. However, the abundance of low cost food created by geographic advantages are also the source of many American financial concerns.

Cheap Corn and the National Debt

There is a direct correlation between cheap corn and the growing national debt. After the World War II the United States experienced a period of rapid economic expansion. Technology that had been used for the war started to be used for other purposes. Medical knowledge increased dramatically, extending the lives of citizens, while mechanization was used on the farms to increase food production. The net result was a rapid rise in the population over a single generation, this group was called the Baby Boomers.

The Baby Boom generation contributed much of the wealth and power the US currently enjoys, however, the cheap food and longer life spans have created considerable financial problems. Because the Baby Boomers are living longer than expect in the 1960’s and 1970’s the national retirement insurance program (known as Social Security) is vastly underfunded and expensive. In addition, American citizens are plagued with a large variety of diseases related to poor eating habits. The combination of the longer life-spans and poorer health has crippled the national budget.

Age, Sickness and Deficits

In 2011 the Federal government spent 59 percent of total expenditures on what I call the “big three:” health-care, social security, and pensions. Corn has had a direct impact on all three categories. Abundance of cheap food allowed for such a large and old population to exist, plus the cheap food is of poor quality leading to an increase of disease. For example, out of the top 10 most expensive medical conditions, 6 are cause by poor diet.

1. Heart Conditions
2. Pulmonary disease
3. High Blood Pressure
4. Type 2 Diabetes
5. Osteoarthritis and other joint diseases
6. Back Problems

Because of the poor health of the aging population it is hard to recommend raising the retirement age because many people are too sick to keep working past their 50s. Raising the retirement age would immediately solve many of the United States financial issues but as long as cheap corn is the main diet of Americans, such action will be impossible.

Closing Thoughts

Cheap food does not have to equate to poor quality food. If the United States gradually stopped paying subsidies for corn production than the Mid-West could be used to grow healthier food that would remain affordable. Medical cost would decrease and raising the retirement age would become feasible. In addition, more jobs would be created because higher quality foods take more human labor providing a wealther tax base to pay down national debt. The geographic advantages the US enjoys have also caused many of our problems. Simply redirecting away from corn would make a huge difference in the health of the population and the financial wealth of the nation.