There is an article in The Independant newspaper, which is the basis of this blog post. It describes how the investment bank, Goldman Sachs (GS), last year (2012) made more than a quarter of a billion pounds (£250,000,000 or almost $400,000,000 [at current exchange rate]) from speculation on food prices. This contributed to nearly a 70% jump in profits for the company and average compensation package (pay and bonus) to its bankers of around £250,000 each.
I would love to know how the company GS manage to justify this apparently obscene, unethical profit. It seems to me that through their gambling on food prices, a gamble that ultimately paid off handsomely for them, there are nearly a billion people in the world that can barely afford to eat.
It seems to me that it is completely unethical that these huge corporations, of which GS is not the only one to make money this way (apparently Barclays, Morgan Stanley and various pension funds and wealthy individuals are also involved) make profit by, in effect, making more people starve because they cannot afford basic necessities that I, and I suspect most people able to read this blog post take for granted.
Food is a basic necessity for everyone. It cannot be right or ethical to make such huge profits and at the same time as by doing so increasing the price of food to push more people into starvation, because they can not afford to eat.
Addendum (added 23rd January 2013):
The BBC News website reported that Justin Forsyth, head of Save the Children, said: “We could be the first generation to end hunger for ever”. It looks to me like Goldman Sachs could finance it.