How Government Actions Keep Food Prices High

[m42]

Although global food prices have fallen somewhat from their summer 2008 peaks, they are still high by historical standards. The best way to encourage moderation in food prices is to allow markets to function so that price signals can be transmitted efficiently. That should translate into less extreme fluctuations in commodity prices, as supply and demand will be able to adjust more quickly. In the longer term, reform and liberalization efforts through the World Trade Organization will allow markets to function more effectively.

In early 2008, before the subprime mortgage crisis caused financial upheaval, the "crisis" on everyone's mind was the rapid growth in food prices.


http://www.freetrade.org/pubs/FTBs/FTB-035.html

Discuss.

[John A Roark]

I grew up in a farm town.
Subsidies.

[m42]

True. :)

How about $1.1 billion in farm subsidies from 1999 to 2006 given to dead people?

http://themoderatevoice.com/24606/obama-rips-farm-subsidy-abuse/

It's a start. But subsidies programs don't need to be overhauled, they need to be disbanded.

[John A Roark]

WHAT?!
And let those poor, underpriviliged farmers compete on the market?
Why, they might have to give up their $ 52,000 Dodge 3500 diesel dually pickups and their $175,000 John Deere combines... you heartless, cruel person you:cry:

[kerrin]

Tarriffs. How about disbanding those?