When food is too cheap, everybody in the economy loses out.

We live in an age when cheap food and expensive housing are both considered to be a good thing. Given that both are essentials, that’s quite a contradiction.

Housing gets to be expensive because government policy makes land assets as valuable as possible. Food gets to be cheap because the people who grow, transport, process, prepare and cook it, and who stack it onto supermarket shelves, are paid as little as possible. And the quality is often as low as possible to keep the price down, too.

This is the Money Disease in action. People are obliged to buy cheap food because they pay so much to the owners of land assets (mortgages and rent). That money is lost to productive use.

But if people could spent more on food and less on housing the money would be recycled back into the productive economy. It would improve the lives of everybody from farmers to shelf-stackers, who would be better paid and have more to spend. The quality of the food could be better, too.

We are what we eat, so better quality food could reduce obesity, heart disease and other illnesses. That would put less pressure on the health service, too.