10/14/07

An interesting view by Dr. Robert Reich (http://robertreich.blogspot.com/)

I’ve got a way to reduce global poverty, decrease the number of workers crossing our borders illegally, save American taxpayers money, and cut your supermarket bill -- in one fell swoop. How? Get rid of US farm subsidies and tariffs.

They were supposed to be a temporary remedy for small farmers during the Depression. But, renewed every five years regardless of which party controls Congress, farm subsidies keep going and going. They've been costing taxpayers some $11 billion a year. The Senate is now considering the latest version, and it's hardly better than what's come before.

Look, I have no problem insuring small farmers against major losses. But farm subsidies go mostly to big agribusinesses that hardly need them.

But the big problem isn't just the waste of taxpayer money. Americans -- including the US media and even Washington politicos -- tend to regard agriculture policy as the exclusive domain of legislators from farm states. Yet our farm policy is the single most damaging thing we're doing to the world's poor. Ending farm subsidies and tariffs would be the single most important thing we could do to reduce global poverty.

Fewer than 2 percent of Americans even work on a farm. Yet about half the population of the developing world depends on farming for their livelihoods. They can’t earn what the global market would otherwise pay them because America’s subsidized farm exports keep prices artificially low.

American cotton growers, for example, export cotton for just over half what it costs them to produce it. Which means more than 10 million African cotton farmers are stymied. If we stopped subsidizing our cotton businesses, world cotton prices would rise, increasing the value of cotton exports from Africa by some $300 million a year.

Meanwhile, the average American tariff on agricultural imports is 18 percent – much higher than the 5 percent average tariff on other imports. So not only do the world’s poor suffer because of our outdated farm policies, but Americans get hit with a double-whammy – we’re subsidizing US agribusiness with our tax dollars while paying some $35 billion a year more for our food than we’d pay if we didn’t also protect agribusinesses.

Our farm policies are even encouraging illegal immigration into the United States. That's because many of the world’s poor who can’t earn enough by farming are desperate to immigrate – legally or illegally – to richer countries like America.

Message to the U.S. Senate: You want to fight global poverty and illegal immigration? You want to reduce the budget deficit? You want to give American consumers a break? There's no simpler first step to accomplish all these things than to end farm subsidies and tariffs.

1 comment:

Unknown said...

Free Lectures from Robert Reich are located on iTunes Store > iTunes U > American Public Media > Business & Economics > Robert Reich