This issue is directly related to the issue of U.S. farm subsidies. By definitiion, subsidies manipulate the market to operate at a level different than what regular supply and demand would dictate. In other words, subisidies lead to innefficiencies in the market. The U.S. has gone through alot of trouble to make sure than as far as global governnance goes, it is allowed to maintain its agricultural subisides while poorer countries cannot if they wish to recieve financial aid. The United States subsidies therefore cause innefficiencies on two fronts:
1) American farmers are getting payed with other citizens tax dollars to produce goods at a more expensive price, thus driving up taxes and food prices.
2) Poorer countries cannot sell their crops to the U.S (other worldwide powers also have food subisidies such as the EU its not just the U.S.), therefore removing a large potential buyer because of the subusidies settup to benefit U.S farmers and tarriffs settup to block foriegn crops.
The only way to remedy these inefficiencies is to drop the agricultural subsidies, which would lead to some short term unemployment but would ultimiately be better for the economy. As for whats being done, theres an ongiiong battle between lobbyists on either side of the issue. Chances are that while the economy is still doing poorly, no legislation will be passed that would lead to further unemployment, so the subsidies are likely to be around for a while longer.
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