In a number of countries around the world, there have been famines, and the issue is not that they have occurred but what did the country supporting or main beneficiary of the country’s resources and income do to help lessen the famine? In the Bible, Old Testament Joseph had the foresight to load up the grain silos during the 7 years of abundance to have food to distribute during the 7 year famine. This passage illustrates famines are nothing new. One of the many countries which suffered a famine was Ireland in the years 1845 to 1852. While being a very pretty country with rolling green grass, Ireland was not a rich country and many people greatly supplemented their diets with potatoes. In 1845, the potatoes developed a fungus and began to rot. What happens next is the important lesson.

In a book called The Famine Plot by Tim Pat Coogan published by Palgrave MacMillanm NY, 2012 a picture of Ireland is painted. The picture of Ireland prior to the famine is a country divided by religion. In the north Catholics outnumber Protestants 2 to 1 and in the rest of the country Catholics outnumber Protestants 20 to 1. Generally Protestants looked towards England and since London ruled the country, appointing the people who ran the government, there was good reason to look towards England.

At the top is the viceroy and chief secretary, then 10,000 landlords many who were absentee landlords. About 3% could be considered as rich farmers and some 76% were cottage farmers and laborers. When famine struck many of the people both the English and Irish looked for leadership from London, the author believes it was simply not there.

At the time, the political theory debate was that poverty was a self-inflicted wound, incurred through bad habits. The morality debate was if a handout was given, it would stultifying initiative self-help among the lowest orders. The reality to do something was going to cost some money. The prevailing attitude of the day was the theory of Adam Smith and the Political Economy Club. The relief was to go through the workhouse which was deliberately made unattractive so that only the most destitute would approach these places for relief. The administrators frowned on outdoor relief because it may encourage people to stay home and procreate (have sex).  (have you ever heard the same expressions in the 21st Century?)

As the famine became worse, the issue was the people had no money to buy food. There was food being produced and exported for production of oxen, sheep, pigs, wheat and oats maintained their levels throughout the famine period. What the government did the first year of the potato blight is to import corn meal from India. Those in opposition were committed to laissez faire and insuring people did not become dependent on expenses from the government. Remember at the time, most of the people in Parliament were wealthy or owned large estates of land, there is a reason why the upper chamber is called the House of Lords.

Linking to dividend paying stocks, as investors you should have enough to ensure you have enough to eat, one method to do this is ensure your dividends enhances your income – regular or pension, then you do not have to worry. Similar to the people sitting in government your attitudes will reflect your investment decisions.

There are more questions than answers, till the next time – to raising questions.