Sunday, October 17, 2010

Subsidies suck

Daily Dose of Statistics: The 600 American rice farmers/firms, who received rice subsidies from the US government, received collectively 20 times the amount of money as that allocated for agricultural rehabilitation in Haiti after the earth quake. Subsidised American rice accounts for 95% of rice purchases in Haiti as the local farmers cannot compete with the subsidised imports. (BBC follow-up report on the situation in Haiti after the earth quake)

Your tax dollar at work. "Socialism" for the rich, capitalism for the poor. US loggers, ranchers, farmers and miners biggest welfare queens around.

1 comment:

Bummi said...

Well, that’s the American policy of subsidies and protectionism. I don’t think you are even surprised.

As you probably now, not only “free trade”, like preached by the US government, but also humanitarian aid can harm the local food marked, and having a devastating effect on local food production and distribution.

When it comes so far, I think it shouldn’t be allowed to export subsidized agriculture products (food). The best way to support sustainable food production and distribution, especially in lower developed countries, is by supporting the locals according to their own needs and demands, e.g. by microloans; preferred given to women. Also education and help to stabilize the governmental institutions will be useful tools.

Stable states are crucial for a sufficiently production and distribution of food and other important goods and services to the entire population.

The US should be punished for their dumping of rice and other food in Haiti.