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When people run out of money, they prioritize eating over electricity for the TV.

Eventually, that effect should bring down the amount that energy companies want to pay for corn. But lots of people might starve first...




Yes, but rich westerners will keep paying higher prices for gasoline while people in poor places get outbid for basic survival ration.


OP is speaking to the market level effective demand.

Someone who's poor and starving will direct their own very limited economic purchasing power toward food. But the marketas a whole includes those who are wealthy (far fewer in number, but individually having vastly greater purchasing power), who might prioritise energy purchases generally.

It's not the poor's own food-vs-energy deceisions, but poor-food vs. rich-energy, which are in play.




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