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The objective of our farm program is to ensure that all farmers have a reasonable standard of living. The way it does this is to
- The objective of our farm program is to ensure that all farmers have a reasonable standard of living. The way it does this is to ensure that farmers receive fair prices for their commodities. It is no more right than farmers should produce for substandard prices than that workers should work for substandard wages.
- Our farm program has been a failure. The benefits of the price subsidies accrue largely to large farmers (because they produce more). Many farmers still have incomes below the poverty line. The high prices have induced increased production, which has meant high costs for the government. Acreage restrictions have had only limited effect because farmers have kept their best land in production. Direct grants to farmers would be preferable to our price support system.
q1. The disagreement between the two is due to the difference in the type of economies and how they function differently.
q2. Identify the sources of disagreement: Are they due to differences in values and objectives? To differences in perception about the state of the economy? Or a failure on one or both sides of the debate to take into account the full consequences of the government's action?
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