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Subsidized corn is not rapidly and consistently increasing in price.
by peacefulhat 6y ago
Subsidized corn is not rapidly and consistently increasing in price.
- grandmczeb 6y agoI don’t necessarily buy the idea that student loans are driving price increases, but there’s a tangible difference between subsidizing producers versus consumers (corn subsidies are generally the former, student loans are the latter).
- xoxoy 6y agoeducation is not a commodity in the same sense as corn and it’s much more of an inelastic good than corn the difference between 50k in tuition and expenses and 55k will not change demand a meaningful amount, and universities exploit the fact that education is inelastic and the money is coming from a guaranteed source regardless of the student’s ability to pay upfront.
- dragonwriter 6y agoThe reason for the subsidies is to support farmers by offsetting what would otherwise be price decreases, so...
- donw 6y agoCorn is an example of subsidized supply. Government money increases the supply of corn, and drives the price down. Hence, corn, and products derived from it -- high-fructose corn syrup (HFCS), corn-fed beef, Nu Metal bands, etc -- are cheaper. College is an example of subsidized demand. Government money increases the number of prospective students, by lowering the financial barrier to attend university. The result being that the cost of a university education has risen, drastically, while the quality of that education has plummeted.