Arnold Kling

Our farm subsidies, their hunger

Arnold Kling, Great Questions of Economics
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Reason's Ron Bailey argues that farm subsidies in rich countries serve to aggravate poverty in poor countries.

Out-competed by rich subsidized farmers, farmers in poor countries (who often make up more than half the population) are stuck on a subsistence-farming treadmill--never able to afford better seeds, equipment, or fertilizer that would help them compete and improve their families' lives.

Bailey argues that governments in poor countries also take measures that are counterproductive from the standpoint of reducing poverty.

Discussion Question. Eliminating agricultural subsidies would help taxpayers and consumers in developed countries, as well as making it easier for poor countries to export their products. Why are agriculture subsidies so entrenched politically?

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