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Those 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 t
by mrleiter 8y ago
Those 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.