The economist shows the stupidity of farm subsidies:
BRUCE SPRINGSTEEN once sang about “going on the town now looking for easy money”. As easy money goes, it is hard to beat farm subsidies. Handouts for American farmers were a tasty $256 billion between 1995 and 2012. The fattest subsidies went to the richest farmers. According to a study by Tom Coburn, a fiscally conservative senator, these have included Mr Springsteen himself, who leases land to an organic farmer. And Jon Bon Jovi, another rocker, paid property taxes of only $100 on an estate where he raises bees. Taxpayers will be glad to know he is no longer “livin’ on a prayer”.
These two aren’t rich because of farming, even with subsidies, but that still no reason to prop up their farming operations.
Every five years, Congress mulls a new farm bill. To confuse matters and gin up more votes, the bills typically address two entirely separate problems: the plight of the poor (to whom the federal government gives food stamps) and the unpredictability of farming (which the government seeks to alleviate). Politicians from rural states, which are grotesquely over-represented in the Senate, back farm bills for obvious reasons. Many urban politicians back them, too, not least because some of their constituents depend on food stamps.
Buying votes is a very expensive business but it means everyone, rich or poor, is paying twice for their food.
Their taxes contribute to the subsidies to produce it. they also pay to buy it and it might well be more expensive because with subsidies goes protection which limits competition and almost always pushes up prices.
The farm bill faces a fight this time but the rest of the story makes even more depressing reading.
It makes me very pleased we no longer have farm subsidies.
I’d much rather face the market than be at the mercy of bureaucrats and politicians.
Hat tip: Quote Unquote
Homepaddock 