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The U.S. Food System and Government Failure

From Mike Moffatt, About.com GuideAugust 23, 2009

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Interesting article on Time.com - Getting Real About the High Price of Cheap Food. Although the article is primarily about organic farming methods, the 'behind the scenes' story is one of public policy:

...The waste produced by the pig and his thousands of pen mates on the factory farm where they live goes into manure lagoons that blanket neighboring communities with air pollution and a stomach-churning stench. He's fed on American corn that was grown with the help of government subsidies and millions of tons of chemical fertilizer... And when the rains come, the excess fertilizer that coaxed so much corn from the ground will be washed into the Mississippi River and down into the Gulf of Mexico, where it will help kill fish for miles and miles around.

It seems that government failure is the culprit for the evils in the current food system, whether it be government failures through action (highly distortionary farm subsidies) or government failures through inaction (failure to correct negative externalities). I do not consider myself to be a libertarian, but when one sees government failures on such a massive scale, it is difficult not to admit that the public choice folks have a point.

Comments

August 27, 2009 at 1:50 pm
(1) Optimalist :

What a delightfully orwellian turn of phrase to call the absence of pricing on negative externalities — i.e. pollution from fertilizer runoff — a government failure.

This is a classic case of a market failure.

I guess your reasoning is that if the market is less than perfect, then its a failure of government. If there’s a problem, and government policy caused it, its a government failure. If there’s a problem and the government hasn’t fixed it, that’s a government failure too.

If you’re going to reason by tautology, and blame government for everything, you might as well go whole hog and call yourself a libertarian after all.

August 27, 2009 at 7:30 pm
(2) gfk :

Government failure? This probably wouldn’t be as big of a problem if us consumers didn’t demand so much meat or corn. I am personally against corn. It gets stuck in my teeth and ethanol production should just be left to the Brazilians (insert Andy Rooney comment here!)

Anybody know the economic benefits of turning vegetarian? Besides becoming a complete coward? KIDDING! KIDDING…

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