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I'm interested in the question of: how would the global food supply/economy be affected if the US were to halt agri subsidies and let the farmers go bankrupt (i
by pm90 8y ago
I'm interested in the question of: how would the global food supply/economy be affected if the US were to halt agri subsidies and let the farmers go bankrupt (it seems to be happening in a twisted way through this trade war anyways so ...).
We know the US produces way too much food than it needs. We know that US food is artificially kept cheap due to subsidies. Would higher food prices lead to more starvation in other countries? More hunger in the US? Or would farmers around the world step up and compensate for the deficit? Would it perhaps lead to farmers in lesser developed countries being better supported and lead to economic growth in those countries?
- mrleiter 8y agoThose are indeed interesting questions. All the West keeps its food prices artificially low by subsidies, or at least the EU does heavily. If food prices were to go up, market would either adapt or compensate by import. That entirely hinges on consumer choice. But if you cut subsidies, what will happen in the short- to mid term is more farmers going bankrupt and an increase of imports. Would it lead to economic growth in those countries? Hard to tell. Usually what happens in an industry that grows is competition which will lower prices in the mid- to long term. So maybe more farmers would be well off by finding jobs. I don't know. Good thought of yours, though.