by Devil » Sat 23 Jul 2005, 07:08:30
I have always known that agricultural subsidies are too expensive and, to be moderate, downright stupid. Agricultural products should, in all countries, be subject to the normal economic pressures of supply and demand.
If I were a nuts and bolts maker and I wittingly produced twice as much as I knew I could sell, would the government buy the surplus off me? Of course not! But if I'm a farmer and I produce twice as much wheat or potatoes as I could sell, why should the government give me money to allow me to sell to a wider market? I would be better employed cutting down the production of that product and using the land for growing a different crop that is sellable. If I don't, then tough cheese, I have miscalculated my planning and should take the consequences for my errors. Similarly, why should the government underwrite losses due to natural catastrophes? There are insurance companies to do that. I should pay a premium calculated by an actuary and be reimbursed if my crop fails due to drought, flood, hail or whatever, not expect the government to act in the place of the insurers. If a fire burns down my nuts and bolts factory, will the government pay me to rebuild? Of course not.
And why am I so opposed to government subsidies? Because we cannot afford it. For every unit of currency paid by the government to farmers, it costs the taxpayer 3 units of currency. So the loaf of bread or litre of milk may sell at 50 cents or whatever, but it probably costs us, in reality, 150 cents, the other 100 being taken in taxes. Without subsidies and a free market economy, it would cost us only 80 cents: net gain to the producer 70 cents which would otherwise go to pay the salaries of functionaries, farmers' lobbyists and other parasites on the gravy train.
In the EU, over half the total budget goes to the "common agricultural policy" which is a polite way of allowing farmers to over-produce at the taxpayers' expense and to fund an army of parasites in Brussels and the Member States' capital cities. Yes, over 50% of the total budget, at a time when the masses of jobless are becoming poorer and poorer. And does this money go to the countries that really need help? Never! The lion's share goes to one of the three richest countries, France. And France refuses downright to sit at a negotiation table to discuss a more equitable distribution of the CAP subsidies. France wants more and more while contributing less and less.
I say that we must abandon all agricultural subsidies immediately, and world-wide. Then if "energy crops" can be viable for the farmers, so be it. If they make more profit growing food for sale fairly and squarely, then so be it, as well. Let supply and demand rule the production of biofuels.
Devil