Continues to Support Big Corporate Welfare Pork
As It Passes the Farm Bill
For Immediate Release.
May 9, 2002 Once again
Washington has put politics ahead of what is best for America and tragically
continues to advance big government corporate welfare programs. Incumbents look for different ways to attract voters in favor of
them by passing big government pork legislation that is targeted to
regional special interest at the expensive of the rest of the nation.
And, as a result, the American taxpayers’ pocketbooks are once again
burdened with the Senate’s passage of a protectionist agriculture bill,
the most expensive in U.S. history.
These efforts will result in the demise of more family-owned
farms (the backbone of American agriculture for hundreds of years) as
well as an increase in taxes and food prices, putting an undue burden
on the poor Americans that every politician always tries to say he is
trying to help.
The very design of
farm subsidy programs is economically unsound and fundamentally flawed. The assumption of agriculture policy in Washington
is that the market prices of crops are too low for farmers to earn sufficient
revenue. The reason for the
low prices is an oversupply of crops on the market since food demand
is not very price sensitive, or in economic terms, it is relatively
However, instead of
allowing the free-market to determine the price of agricultural products,
the Senate measure sets forth programs that are counterproductive and
ultimately aggravate the cause for low prices.
For example, the measure sets a higher target price for farmers
to receive and then to supplement the farmer’s income pays them the
difference between the target price and the low market price.
However, an incentive for farmers to grow more not less, of the
oversupplied crops is provided by such subsidies. This results in the price of these crops to
decline further necessitating even higher subsidies as has been the
case in the past when farmers have responded to past subsidies by planting
as many as 5 million acres more of the oversupplied crops.
farmers export 96 percent of their crops.
However, contrary to its commitment to the World Trade Organization
(WTO), the U.S. has indicated it would limit crop subsidies. This most recent legislation jeopardizes such
actions. These proposed subsidy
increases will hurt the U.S.’s ability to export farm products because
America has raised farm subsidies as it urges its trading partners to
It is time for Washington
to stop micro-managing the free market and let prices be determined
by supply and demand principles. As
the government continues to interfere with the market place instead
of limiting its involvement, more harm will come to the American consumers,
employers and employees. The Senate had an opportunity to free America’s
agriculture industry and reduce the burden on the taxpayers and consumers.
Instead it decided to subsidize multimillionaires by paying them
billion of dollars of government corporate welfare subsidies.
“What is even more
disheartening is that President Bush, the compassionate conservative,
has once again decided to allow big government pork and government intervention
instead of free market principles to reign as he will not veto this
legislation but will quietly sign it into law,” said Dr. Joel P. Rutkowski,
president of the American Voice Institute of Public Policy.
“Far too often, the President will use the bully pulpit to speak
as a man convicted to conservative principle, yet when it comes to action
he continues to promote a liberal democratic agenda of big government and government interference in the lives of
Bush, actions always speak louder than words.
And you can fool the American people for only so long before
they finally figure out who you really are and what you truly believe.”
Joel P. Rutkowski, P.h.D.
President, The American Voice Institute Of Public Policy
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