Subsidy

“Moderation in all things,” Hagar the Horrible’s doctor told him. “But you can take that too far,” was Hagar’s response. Too much eating and drinking and raiding villages can be bad for your health. Too much sitting and watching TV can be just as bad. Moderation is a way to get to a balanced lifestyle.

Raw capitalism can be harsh and unforgiving. The risk to farmers from market forces and natural forces led to what we know as the Farm Bill. The idea of providing a buffer to the farmers so that they could keep prices low to the consumers sounds appealing enough. We all have to eat, so lower food costs benefit everyone, at some level. Yay, moderation!

Corn is pretty much the poster child for American farming, since it’s our biggest crop by far. So the Farm Bill has a big impact on corn, which is eaten by people and livestock, and used to make ethenol to add to our gasoline. But it also affects barley, about half of which is made into beer. So, corn, beef, gas, and beer prices are lower than they would be without the Farm Bill. Still sounds good.

The Farm Bill is an example of a subsidy, which is money supplied by the government (or other organization) to an industry to keep product or prices low. It provides moderation, keeping the agricultural product prices from wide swings and high levels. But the latest Farm Bill is almost one trillion dollars. Trillion. That’s not a spellcheck error.

The US is the largest food producer in the world, and the largest food exporter, as well. In fact, we export more food than all of the EU countries, combined. And the Farm Bill will cost us nearly a trillion dollars. Maybe we’ve taken moderation too far. Maybe it’s time to find a new balance.

Paid for by Hagar the Horrible for Congress…