A government subsidy can be defined as a subsidy paid to farmers and agribusinesses to supplement their income. The United States currently pays around $20 billion per year to farmers in direct subsidies as "farm income stabilization." I think overall it's a very good thing. It keeps American jobs here and it prevents some local farms from going under. It helps farms in the short run because it keep them a float and prevents them from going under. It also affects them in the long run. A bumper sticker that I once saw comes to mind. The bumper sticker said "without farms there will be no food." By giving farmers money they are able to expand their crop supply. They are then directly able to supply more food to the markets. I think agricultural subsidies are a good thing that everyone should support.
Monday, May 24, 2010
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