Sunday, May 12, 2019

The Perils of Farm Subsidies

If farm subsidies were not present, supply and demand would raise prices. Farmers would not suddenly go broke or be unable to sell their formerly subsidized crops. Subsidies are supposed to be temporary, not a perpetual taxpayer expense.

  • "Without the farm subsidies, the Soybean farmers would have to eat the losses the OVERSUPPLY of soybeans creates devastating their bottom line because China is no longer buying soybeans from American farmers. In other words, without the subsidies, the price of soybeans would plummet instead of going up."

If there is an oversupply, that means taxpayers are handing over money to pay farmers to overproduce. If you stop the subsidies, fewer soybeans are produced and prices rise accordingly. Or the same amount is produced and farmers have to raise prices to cover expenses.

Are you saying that markets cannot handle price fluctuations? You are saying that American taxpayers should be subsidizing Chinese purchases? That our products can't compete on the world markets without crutches? Just how much are taxpayers shelling out in corporate welfare?

It's like oil subsidies. Artificially skew the market so oil companies can either make more money, make it more difficult for alternative fuels to compete, or force global producers to distort their prices. And American consumers pay taxes on the final product, so we are getting screwed on both ends of oil markets.

Do you like US companies competing against foreign producers whose governments subsidize products coming out of their countries? Flooding the market with cheap goods that displace American products?

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