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| | |-+  Actual Farm Subsidies Abolition Bill (search mode)
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Author Topic: Actual Farm Subsidies Abolition Bill  (Read 8681 times)
Emsworth
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« on: June 06, 2006, 11:51:09 am »

From that statement, Mr Secretary, I can only assume that federal government subsidies for Atlasian farmers must somehow contribute to poverty in the Third World.
That is correct.

Farmers need not fear that they will lose money in the market. The farm subsidy policy of the government essentially ensures that farmers will make a profit on whatever they produce. As a result, farmers tend not to restrict their production; they attempt to grow as many crops as possible. The supply of crops by far outstrips the demand for crops in Atlasia/the United States. The excess output, then, is dumped in "Third World" countries at extremely low prices--so low, in fact, that the local farmers cannot compete. Since the local farmers cannot compete, they remain in poverty.
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