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Helpline / Re: Investment
« on: June 08, 2011, 06:19:34 AM »My family are predominately farmers, so while I can see where you are coming from, most of us rural folk accept that there must be some sort of limit to things like water/space/required gases and nutriments. While we have advanced fertilizers in the past, there is no reason to expect that there is ALWAYS a more efficient form of fertilize to develop or that the the world has infinite capacity to produce that fertiliser or water for that matter. While a single farm or group could conviceably continue the trend as you describe, it would more then likely be at the expense of other agricultural areas, as you acquire their supply of water and nutrient supplements. By the way, the world already produces enough food to solve world hunger, the issue is actually two fold
- Rich western nations spend a proportionally larger amount of useful land on products that produce lower energy/nutrient outcomes, such as meat
- Many nations destroy produce/store it or otherwise deny its movement onto the markets in order to preserve a market price point that they want to sell at.
A smaller effect is the over eating that is prevalent in our western world. All those extra calories that expand our bellies, potentially come at the cost of food that could have fed the starving.
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Not all lands are equally inhabited. As far as the economy is concerned, there's no problem with draining uninhabited lands to supply the inhabited ones. I'm not making a moral statement, nor saying anything about feeding the earth's modern or future population. Nor am I saying investments should triple a region's food productions.
All I am saying is that the argument that it is not realistic that a temporary increase in funding (an investment) would result in a temporary increase in productivity (more food being produced) is completely fallacious. It would most certainly be realistic that food production could go over 100%. Just as realistic as investments increasing gold output, really. Some people don't think it would make sense for production of food to ever rise above 100%. That normal production *is* the maximum possible production, and that no amount of investments could increase this. That's just not how the world works.
And the limit you speak of is financial, not theoretical. It's not realistic to invest past a certain point, because the reward becomes negative. You could still do it, and seek to improve production as much as possible, but you'd just go bankrupt before seeing exactly how far you can take it. Financial limits are movable, and so things you'd consider past the limit today may not be tomorrow, just as many things they considered past that limit before are now the norm.