Food prices are rising across the global providing fodder for the media to attack QE2 and all of its flaws. But this event provides an opportunity for the United States to save the tax payer billion assuming someone has the intestinal and mental fortitude to act and stand up to a massive lobbing group. Eliminating the direct subsidies to Farmers in the United States would save the tax payers $20 billion dollars a year. Don’t give me the “But they protect the small farmer” they don’t, subsidies are often distributed on production, if they wanted to save the small farm they would base the subsidy on a per farm biases not on production volume. Anyway with higher prices farmers won’t need support, the market fixes the problem by making production profitable.
Higher food prices will lead to more global farmers being self-sufficient and self-sustaining leading to more farmers selling goods. Allowing them a higher standard of living, in turn allow them to upgrade technology, like irrigation, leading to higher yield more production and more profits. The vicious cycle works in good a good way.
Kill the subsidy
Daniel Plainview
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