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CNN Republican Debate & Farm Subsidies

 
 
Chumly
 
Reply Thu 29 Nov, 2007 03:30 am
In my flu-like-sniffling-haze I watched the Republican debate on CNN.

It seems most if not all the candidates claim that farm subsides are essential for basically two reasons:

1) Farm exports would be non-competitive, thus agri-businesses would suffer dearly because all the rest of the world heavily subsidizes their farming practices.

2) The US must ensure an abundant and secure source of food domestically. If the US does not, and thus depends on foreign food like it does with oil, it puts the US at excessive risk. Farm subsides are the only way to ensure an abundant and secure source of food domestically.

Whoa Nelly!

It seems to me that 1) & 2) are pretty much hokum as these same rationales could (and in fact have many times before) been used to argue all sorts of domestic protectionism schemes, for all sorts of products, from steel to autos to semiconductors to motorcycles!

Thus by that rationale most everything should be heavily subsidized to protect and secure the US from dangerous foreign influences!

Now I understand about the logical fallacy called the Slippery Slope, but again I can see no rationale why 1) and 2) are not just as applicable to many many other products and services, in which case mother Russia's idealizations were correct when it came to state subsidizations and national security - not!

I would suggest that increasing interdependence through globalization with a fair and level playing field (we need strong Antitrust as applied to the multinational corporations and their government crony bedfellows) is a better way to ensure a secure safe world. Even if this means that the US gives up a certain level of autonomy.

The general inclination of the US might then be stronger to not let negative situations start in the first place, if there were increased global interdependence. Whereas as things stand now, if the US continues with uneconomic, costly and uncompetitive subsidies, it can engage in war and other negative actions with less fear of negative economic implications.

I suggest it's a matter of trust, sincerity, the free and fair movement of goods and services, and the dismissal of nationalism.

Now whether that is truly achievable on a global scale remains to be seen, but it would appear that some things have moved towards this in the last few hundred years.

I am not convinced by any means that a lot of the farm subsidies really aid the US both longer term both economically, environmentally or from the prospective of national security.
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Type: Discussion • Score: 0 • Views: 1,074 • Replies: 17
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blatham
 
  1  
Reply Thu 29 Nov, 2007 09:52 am
A powerful lobby and unhappy electoral surprises are the actual reasons. Hope you heal with high quickitude, chumly.
0 Replies
 
Chumly
 
  1  
Reply Thu 29 Nov, 2007 01:47 pm
I understand a bit about soft-money and lobbyists, but I am not sure what you mean about electoral surprises. As a comparison I suggest Canada's Competition Bureau is pretty much a barrel of giggles given all the government sanctioned marketing boards, anti-comparative socialized auto insurance in BC........the list is long.

At least the US with its Antitrust laws arguably shows a bit of teeth from time to time.
Quote:
Welcome to the Competition Bureau's Web site. The Competition Bureau is an independent law enforcement agency. We contribute to the prosperity of Canadians by protecting and promoting competitive markets and enabling informed consumer choice. Headed by the Commissioner of Competition, the organization investigates anti-competitive practices and promotes compliance with the laws under its jurisdiction.
http://www.competitionbureau.gc.ca/internet/index.cfm?lg=e
0 Replies
 
blatham
 
  1  
Reply Thu 29 Nov, 2007 02:22 pm
chumly

The republicans have done a serious courting job of 'the farm vote'. The Klamath River (oregon) fish runs are now close to done for (if memory serves) through Karl Rove's manipulation of legislation/regulation on water usage prejudicial to irrigation and to the detriment of fish habitat, as one example.
0 Replies
 
cjhsa
 
  1  
Reply Thu 29 Nov, 2007 02:28 pm
Yeah, fishing the Klamath really sucks. Don't go there whatever you do.

http://www.usafishing.com/klamath.html
0 Replies
 
Chumly
 
  1  
Reply Thu 29 Nov, 2007 03:48 pm
Article making reference to both farm subsidies and antitrust considerations:

Quote:


http://agobservatory.com/headlines.cfm?refid=100510
0 Replies
 
Chumly
 
  1  
Reply Thu 29 Nov, 2007 03:53 pm
Here is some light reading (hee hee) on "The Key Difference Between US and Canadian Antitrust/Competition Laws"

http://www.acc.com/canada/program/antitrust.pdf
0 Replies
 
Chumly
 
  1  
Reply Thu 29 Nov, 2007 05:16 pm
cjhsa wrote:
Yeah, fishing the Klamath really sucks. Don't go there whatever you do.

http://www.usafishing.com/klamath.html
That website gives no idea what the fish populations and health were oh-say 30 years ago.

Some happy sport fishermen on a website is pretty anecdotal, subjective and short term; admittedly better than a website about some unhappy sport fishermen all else being equal!

South Park's on........
0 Replies
 
blatham
 
  1  
Reply Fri 30 Nov, 2007 09:24 am
Quote:
From the 30 July 2003 Issue of the Wall Street Journal

Oregon Water Saga Illuminates Rove's Methods With Agencies
TOM HAMBURGER
Staff Reporter of THE WALL STREET JOURNAL
July 30, 2003


WASHINGTON -- In a darkened conference room, White House political strategist Karl Rove was making an unusual address to 50 top managers at the U.S. Interior Department. Flashing color slides, he spoke of poll results, critical constituencies -- and water levels in the Klamath River basin.

At the time of the meeting, in January 2002, Mr. Rove had just returned from accompanying President Bush on a trip to Oregon, where they visited with a Republican senator facing re-election. Republican leaders there wanted to support their agricultural base by diverting water from the river basin to nearby farms, and Mr. Rove signaled that the administration did, too.

Three months later, Interior Secretary Gale Norton stood with Sen. Gordon Smith in Klamath Falls and opened the irrigation-system head gates that increased the water supply to 220,000 acres of farmland -- a policy shift that continues to stir bitter criticism from environmentalists and Indian tribes.

Though Mr. Rove's clout within the administration often is celebrated, this episode offers a rare window into how he works behind the scenes to get things done. One of them is with periodic visits to cabinet departments. Over the past two years Mr. Rove or his top aide, Kenneth Mehlman -- now manager of Mr. Bush's re-election campaign -- have visited nearly every agency to outline White House campaign priorities, review polling data and, on occasion, call attention to tight House, Senate and gubernatorial races that could be affected by regulatory action.

Every administration has used cabinet resources to promote its election interests. But some presidential scholars and former federal and White House officials say the systematic presentation of polling data and campaign strategy goes beyond what Mr. Rove's predecessors have done.
full article here
0 Replies
 
cjhsa
 
  1  
Reply Fri 30 Nov, 2007 11:07 am
blatham wrote:
Quote:
From the 30 July 2003 Issue of the Wall Street Journal

Oregon Water Saga Illuminates Rove's Methods With Agencies
TOM HAMBURGER
Staff Reporter of THE WALL STREET JOURNAL
July 30, 2003


WASHINGTON -- In a darkened conference room, White House political strategist Karl Rove was making an unusual address to 50 top managers at the U.S. Interior Department. Flashing color slides, he spoke of poll results, critical constituencies -- and water levels in the Klamath River basin.

At the time of the meeting, in January 2002, Mr. Rove had just returned from accompanying President Bush on a trip to Oregon, where they visited with a Republican senator facing re-election. Republican leaders there wanted to support their agricultural base by diverting water from the river basin to nearby farms, and Mr. Rove signaled that the administration did, too.

Three months later, Interior Secretary Gale Norton stood with Sen. Gordon Smith in Klamath Falls and opened the irrigation-system head gates that increased the water supply to 220,000 acres of farmland -- a policy shift that continues to stir bitter criticism from environmentalists and Indian tribes.

Though Mr. Rove's clout within the administration often is celebrated, this episode offers a rare window into how he works behind the scenes to get things done. One of them is with periodic visits to cabinet departments. Over the past two years Mr. Rove or his top aide, Kenneth Mehlman -- now manager of Mr. Bush's re-election campaign -- have visited nearly every agency to outline White House campaign priorities, review polling data and, on occasion, call attention to tight House, Senate and gubernatorial races that could be affected by regulatory action.

Every administration has used cabinet resources to promote its election interests. But some presidential scholars and former federal and White House officials say the systematic presentation of polling data and campaign strategy goes beyond what Mr. Rove's predecessors have done.
full article here


BFD. Everyplace west of the Rockies has this issue - a balance must be found. Imagine trying to build the California aqueducts today with all the tree and bunny huggers in the way.
0 Replies
 
flaja
 
  1  
Reply Fri 30 Nov, 2007 12:53 pm
Re: CNN Republican Debate & Farm Subsidies
Chumly wrote:
In my flu-like-sniffling-haze I watched the Republican debate on CNN.


Likely the best way to watch such things.

Quote:
1) Farm exports would be non-competitive, thus agri-businesses would suffer dearly because all the rest of the world heavily subsidizes their farming practices.

2) The US must ensure an abundant and secure source of food domestically. If the US does not, and thus depends on foreign food like it does with oil, it puts the US at excessive risk. Farm subsides are the only way to ensure an abundant and secure source of food domestically.


3) Each candidate wants to win the Iowa Caucus.
0 Replies
 
cjhsa
 
  1  
Reply Fri 30 Nov, 2007 03:49 pm
I wonder, were those farm subsidized plants at the debate?
0 Replies
 
Chumly
 
  1  
Reply Fri 30 Nov, 2007 08:02 pm
I would think it rather cumbersome to bring a food processing plant to a republican debate.
0 Replies
 
dadpad
 
  1  
Reply Fri 30 Nov, 2007 10:46 pm
Quote:
all the rest of the world heavily subsidizes their farming practices.


Just.... Not true. At least in Australias case.

Australia and New Zealand are the standout exceptions, producing more than 5 per cent of the West's farm output with less than 0.5 per cent of its subsidies. Australian farmers derived just 4 per cent of their income from government support, and NZ farmers 2 per cent.

Western subsidies to farmers edged even higher in 2003, with a record $US350 billion ($A506 billion) transferred to the industry by taxpayers and consumers in a single year.

The Organisation for Economic Co-operation and Development's annual monitoring of agricultural spending estimates that Western farmers derived 32 per cent of their revenue from government subsidies and price supports, up from 31 per cent in the previous two years.

A rising currency pushed up Europe's costly price supports, while reforms focused on increasing market efficiency and shifting to less trade-distorting subsidies, rather than reducing subsidies.

The OECD estimates that farmers received $372 billion in direct and indirect support, including higher prices through tariff protection, while governments spent another $90 billion on marketing, infrastructure, research and other industry support.

On its preferred rolling three-year measure, the OECD estimates that farm subsidies have declined from 37 per cent of farm revenue at the start of the Uruguay Round in the mid-'80s to 31 per cent now.
Full artical
0 Replies
 
Chumly
 
  1  
Reply Fri 30 Nov, 2007 11:17 pm
To clarify, I did claim it's true; but only noted that during the Republican debate on CNN, the Republican presidential nominees had consensus that the rest of the world heavily subsidized their farming practices, making it (presumably) a viable rationale for US farming subsidies.

Interesting question comes to mind though: given that the Australian dollar has often traditionally been a laggard compared to the major currencies, I wonder how much that plays into lower Australian farming subsidies, or are there other underlying reasons why Australian subsidies would seem to be less? Cheaper costs of production? Cheaper land? Cheaper labor? Cheaper taxes?

There has to be reasons why Australian farm products would be competitive internationally against more subsidized products; that is unless Australian farm products are not competitive internationally - on a price basis only I'm talking here - not on whether there is a market due to demand for other reasons such as perceived quality or other less tangible considerations. The caché of New Zealand lamb perhaps?

FWIW I've seen very little Australian farm products here in BC Canada, nor in Washington / Oregon in the US - anecdotal evidence admittedly but perhaps telling.

In any case I suggest a subsides are simply a form of protectionism.
0 Replies
 
dadpad
 
  1  
Reply Sat 1 Dec, 2007 01:29 am
Chumly wrote:
To clarify, I did claim it's true;

[color]I understood that[/color]

but only noted that during the Republican debate on CNN, the Republican presidential nominees had consensus that the rest of the world heavily subsidized their farming practices, making it (presumably) a viable rationale for US farming subsidies.

Interesting question comes to mind though: given that the Australian dollar has often traditionally been a laggard compared to the major currencies, I wonder how much that plays into lower Australian farming subsidies, or are there other underlying reasons why Australian subsidies would seem to be less? Cheaper costs of production? Cheaper land? Cheaper labor? Cheaper taxes?

There has to be reasons why Australian farm products would be competitive internationally against more subsidized products; that is unless Australian farm products are not competitive internationally - on a price basis only I'm talking here - not on whether there is a market due to demand for other reasons such as perceived quality or other less tangible considerations. The caché of New Zealand lamb perhaps?

FWIW I've seen very little Australian farm products here in BC Canada, nor in Washington / Oregon in the US - anecdotal evidence admittedly but perhaps telling.

In any case I suggest a subsides are simply a form of protectionism.


Australian governments have over the last 10 or more years deliberately reduced farm and manufacturing subsidies attempting to encorage other governments to do the same. The so called level playing field.

Often this has been to the detriment of Australian manufacturers and farmers. There are virtually no clothing manufacturers left in Australia. Australian Pork farmers are in the same boat now. faced with cheap asian imports and unable to support higher wage feed and infrastructure costs its basically get big and efficiant or get out. These policies have forced farmers to become more corporate in nature and adopt high level business practices.

Australias farm sector has been able to compete by becoming big and efficiant. Along with sometimes crticised practices such as single desk marketing. There have been some extreemly dubious (illegal) practices by the now defunct wheat marketing board (AWB).

I find it difficult to get my head around the whole subject. First start with what is actually a subsidy. Is drought relief an agricultural subsidy? Is government assistance to market wheat and wool a subsidy?
0 Replies
 
Chumly
 
  1  
Reply Sat 1 Dec, 2007 01:53 am
Like many things socio-political-economic it's not a question of black and white.

For simplicity / convenience / argument's sake I'll say that an unfair subsidy is long term with the express rationale of protecting the existing system from change, whereas a fair subsidy would be short term with the express rationale of staving off a dire emergency.

Witness the Eastern Canadian decimation of the commercial fishing stock. It's a long term highly subsidized industry thus allowing for a massive government sponsored depletion of fish stock.

That's not to say that private enterprise cannot also be as environmentally ruinous, but at least it's not at the tax payer's tacit acceptance, and thus can be more easily regulated as opposed to it being the government itself as the underlying problem.

And of course that then opens the can of worms of government regulation. But when it comes to the environment I see no alternative, because private enterprise does not keep the books using the environment as part of the balance sheet! I for one do not want to the play supply and demand game with the ecosystem.

Or so I might argue anyway Smile
0 Replies
 
Advocate
 
  1  
Reply Sat 1 Dec, 2007 10:24 am
0 Replies
 
 

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