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There's a huge difference between subsidizing stability of staple crops and continuing to subsidize beyond sustainable levels or because of a lobby. Clearly it
by sailfast 8y ago
There's a huge difference between subsidizing stability of staple crops and continuing to subsidize beyond sustainable levels or because of a lobby.
Clearly it is in the national interest to ensure we can produce certain kinds of goods, however government does not really adapt to the market or changing tastes so they end up causing asymmetries. You could likely dial-down these subsidies a significant amount and still be just fine from a production perspective.
Even if you wanted to destabilize global markets by domestic subsidies to create leverage, we're still WAY beyond that level which is a bit crazy. Anecdotal? I dunno - I would point to the current Soybean prices after losing one importer (China) and the fact that we basically are incentivized to dump wheat and corn on countries for aid to prop up prices.
- vkou 8y ago> There's a huge difference between subsidizing stability of staple crops and continuing to subsidize beyond sustainable levels or because of a lobby. There is, just like every company has 20% of its workforce that can safely be fired, with zero, or positive impact on overall performance. The problem is that nobody can reliably identify who that 20% is. It's much the same with agriculture subsidies. Your system can either be efficient, or it can be resilient. The US Federal government - just like the government of every other developed country in the world - wants to err strongly on the side of resilience.