Fat Americans, Starving Africans, and the Farm Subsidies That Love Them

US farm subsidies may win the award for the kind of story that, on face, is immensely boring, yet it is a story with severely devastating impacts across the globe. We're in the middle of a ten-year stretch, during which time the US government will hand out at least $171 billion, subsidizing big American farmers and spurring the overproduction of wheat, corn and the like.

From the Heritage Foundation, "Most of their enormous $171 billion cost would subsidize highly profitable Fortune 500 companies, agribusinesses, and celebrity 'hobby farmers' and help fund their purchases of small family farms, and the average American family would be left paying $4,400 in taxes and inflated food prices to benefit millionaires--unless Congress or President George W. Bush finally puts an end to this counterproductive waste of taxpayer dollars."

And then there are the Africans.

So not only are Americans paying out of their own pocket twice, first as taxpayers and then second as consumers at the grocery store, but then the US turns around to do its good deeds around the world, of which it does quite a bit with international aid, and the farm subsidies bear their bushels of rotten fruit once again. Inflated prices from American farmers hurt the world economy; farmers in the developing world can't sell their crops at market prices because market prices have been manipulated (remember the infusion of $171 billion?).

On top of messing with the market, the US regularly delivers giant sacks of grains to areas of the world like Darfur and the Congo, only, the wheat it delivers was grown in the US with the subsidies, so it's a trifecta: the delivery of aid itself is further depressing the local economies of developing countries.

So it was shocking to see CARE, a major humanitarian organization fighting global poverty, boycott the aid of the US. CARE turned down $45 million worth of wheat, arguing that its distribution harms local farmers. The Independent even wrote that the aid was "wrecking" Africa.

Lastly, the 2007 US Farm Bill, which is currently being debated in Congress and will be in effect for five years, looks like it will pass, with little change in policy.

Comments

[Cindy]

How is aid wrecking Africa? I honeslty don't understand this. It harms local farmers? By feeding people who couldn't buy their goods anyway? Sounds silly...

[Manny]

The biggest problem is that market prices are being manipulated in the interest of various private companies which are becoming more powerful than the states!

[gary @ coq10]

i feel like the US can't win. People will also complain if we stop giving aid. There are definately 2 sides to the coin on this issue

[CAPlastic Surgeon]

Africa needs money not wheat. They need machinery, computers, books, etc. They need to learn to become self sufficient. In order to do that millions could starve. But it would save millions more in the future. Catch 22 big time.

[Kamagra]

It is a very big problem. People will also complain. Government need any action on that matter.

[recherche femme russe]

I think, this theme is quite actual now. The biggest problem is that market prices are being manipulated in the interest of various private companies which are becoming more powerful than the states!

[Blepharoplasty]

in a competitive market, farm subsidies is a not good for the economy, this tend to distort the market, however, for an agricultural commodities, government are permitting subsidies to protect producers as well as consumer.

[Kondor]

So not only are Americans paying out of their own pocket twice, first as taxpayers and then second as consumers at the grocery store, but then the US turns around to do its good deeds around the world, of which it does quite a bit with international aid, and the farm subsidies bear their bushels of rotten fruit once again. buy clenbuterol

[Tomy]

Inflated prices from American farmers hurt the world economy; farmers in the developing world can't sell their crops at market prices because market prices have been manipulated. legal steroids

[Bad77]

On top of messing with the market, the US regularly delivers giant sacks of grains to areas of the world like Darfur and the Congo, only, the wheat it delivers was grown in the US with the subsidies, so it's a trifecta: the delivery of aid itself is further depressing the local economies of developing countries. buy steroids

[Baltic Dating Site]

Thanks for this post! On top of messing with the market, the US regularly delivers giant sacks of grains to areas of the world like Darfur and the Congo, only, the wheat it delivers was grown in the US with the subsidies, so it's a trifecta: the delivery of aid itself is further depressing the local economies of developing countries.