Rice Shortages-Fact or Fiction?

Lately there's been some scary news about rice shortages. Costco and Sam's Club have been limiting the amount that customers can buy in response to unexpectedly rapid sales spurred largely by reports of rice shortages in other countries.

1. In Asia, rice prices have climbed dramatically, in part because production has not kept pace with population growth. India and the Philipines are limiting their rice exports in order to satisfy demand at home.

But there is plenty of rice in the United States, despite the panic. Our fear and urgency is a fascinating mirror showing us how rumors and perceptions can exacerbate an already tricky situation. Like the epidemic of bank withdrawals that precipitated the Great Depression, the perception that the rice supply is insufficient is creating an insufficiency in the rice supply.