Mises Wire

How government subsidies have ruined the American diet

How government subsidies have ruined the American diet

The Denver Post has an excellent article on the convoluted system of farm subsidies that have produced such heavy production of meat, dairy and grain at the expense of fruits and vegatables. They note that it is more expensive to produce fruits and vegetables, but we could also notice that subsidy to grains, corn, for instance, leads to less farm land being devoted to the growing of corn, and less capital invested in corn overall. More land devoted to the growing of melons, for example, will lead to lower prices for the consumer. And once a crop is overproduced, production will go down. With corn and other subsidiezed grains, however, year after year, corn is over produced. By “overproduced, I mean, it is produced in greater quantity than it would be if the taxpayer weren’t being forced to prop up its price. So, corn keeps getting produced, when the public demand for corn at it’s true non-subsidized price is of course lower than the demand for it at a real market price.

Read the article here 

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