Well, what you are describing is actually what happens during economic depressions. People who need to eat don't have money so economic activity is diverted from producing food even though any sane individual would think that producing enough food is the highest priority for any civilization.

What I personally find strange is that there are economic schools of thought that just axiomatically conclude that nothing is wrong and these people are rightfully starving even though there are economic schools that prevent starvation and end up with superior output.