7. What's Wrong with This Way of Thinking?

"An agricultural program that pays farmers to reduce their planted acreage and cut back on the production of farm products can increase everyone's income. The reduction in the supply of farm products will cause their prices to rise, which will result in an increase in the income of farmers. The higher level of farm income will cause farmers to increase their purchases of manufacturing products, which will expand the income of citydwellers.

The farm subsidies will increase the income not only of farmers, but also of the nation as a whole."