Taking Account of Hidden Costs Results in Sustainable Food Production

Taking account of hidden costs in food production will result in sustainable food production. These hidden costs are called Externalities in traditional economics. That sounds really complicated. It isn’t. True cost accounting is the correct way to look at and evaluate these hidden costs. Mainstream economics hides these costs with good reason. Many seemingly profitable economic decisions would not be taken if these costs were taken into account. This change in our economic system is vital to protect our world. It is also vital that the system is adopted by the United Nations, the only way that China, Russia, India and in particular, the USA can be pressurised to comply.

This video was produced by Friends of the Earth

Taking Account of Hidden Costs

Classical economics does not take account of externalities. In the science of economics the term externalities is used to lump together the external costs of an economic action or policy. Historically we have been informed that these costs are very difficult to measure; so they are ignored which is really convenient for governments.

These costs should be paid for eventually. That they are not is why we have global warming, poor public health and an environmental crisis. The costs are eventually felt by public health systems, the environment and ultimately by every single one of us. Global warming is an externality. Dealing with pollution is an externality. Another relevant example is the use of farm subsidies to make farming profitable. These subsidies are not reflected in food prices, but we pay instead through taxation.

Now of course even those farm subsidies are disappearing. That is what we at Earth and Leaf are about. See our Shepherds of the Trees project.