[Vision2020] Town Crying
Dale Courtney
dmcourtn@moscow.com
Thu, 11 Dec 2003 07:06:10 -0800
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Yesterday's Daily News ran an Article by Clifton Anderson titled =
"Today's big business has anti-people bias".=20
The response to his peculiar view of economics ran in the Daily News 12 =
years ago (31 July 1991). I'm reposting it here, since I doubt that the =
Editor would ever allow it to run again.
Best,
Dale
-------------------------------------------------------------------------=
-------
FARM FAIRY TALES: BANANAS IN VERMONT, SUGAR BEETS IN IDAHO
Once upon a time, US banana producers decided they needed =
protection from cheap imports. Slogans appeared about how jobs would be =
created, our balance of payments improved, and self-sufficiency attained =
by keeping out cheap banana imports.
A quota and tariff were put on banana imports, and a price =
floor was put under all bananas sold in the US at about three times the =
world price.
A banana industry sprouted in Vermont.
There, greenhouses were built and irrigated with water drawn =
from the Connecticut River. Propane and electricity sales skyrocketed =
during Vermont's nine-month winter. Contractors and their employees =
were delighted with the boom in greenhouse building.
Farmers, loggers, maple syrup harvesters, and ski-resort =
employees switched to the new banana Industry, causing a decline in =
these industries due to rising wages and prices. New irrigation demand =
caused salmon and shad runs in the Connecticut River to plummet. =
Electricity generated by the river also fell.
While consumers grumbled at the annual increase in their =
grocery bills, Vermonters found some solace in the fact that they could =
buy their bananas at half the price across the border in Canada.
With the doubling of the price of bananas, consumption =
declined. Consumers found that kumquats were a tasty substitute, and =
the demand for kumquats rose dramatically. Soon kumquat production =
exceeded that of bananas.
Other banana substitutes appeared. The banana industry was =
disturbed about the rise in their sales, and rumors appeared suggesting =
they might cause cancer and other health problems.
Naturally, the College of Agriculture at the University of =
Vermont was pressed into service to do research on bananas. The =
Legislature gave money for banana research. Producers, through their =
trade association--the Royal Order of Banana Raisers Society (ROBRS)--in =
turn raised additional research funds. More plant scientists were hired =
and new species of bananas were developed.
A banana economics department blossomed.
Every year, ROBRS held its annual convention in Miami. A =
chartered 747 flew politicians, together with assorted spouses and ski =
bunnies, to the convention. Vermont's Congressional delegation reaped =
honoraria for delivering speeches and pep talks to the Industry.
At each year's convention, a Friend of Bananas was chosen =
from among those politicians who had done the most to protect the =
industry from competition. A political action committee was set up to =
channel campaign funds to industry supporters.
Each year, a Banana Festival was held and a Banana Queen =
crowned.
Then one year a new economist was hired at the University of =
Vermont. Having come from another state, he was not familiar with the =
clout of Vermont's banana industry. Indeed, when he saw a naked =
subsidy, he was prone to declare that the emperor had no clothes.
"What the hell are we doing growing bananas in Vermont?" he =
said.
Others began to wonder too, and began to ask one another, =
"Why are we growing bananas in Vermont?"
No one could think of a reason, except the banana economists =
who knew where their bread was buttered.
The naive economist even went so far as to join a group of =
nationally prominent economists, some of whom were Nobel Prize winners, =
in advising Congress to remove the tariffs, quotas, and price supports =
that had doubled the price of bananas to the consumer.
Predictably, ROBRS went bananas.
Letters demanding that the economist be muzzled were sent to =
the Governor, the President of UVM, and the Dean of the College of =
Agriculture.
A letter was also sent to the naive economist protesting his =
opposition to protection of the banana industry, and demanding that he =
publicly disassociate himself from the other economists.
ROBRS threatened the Vermont College of Agriculture with =
withdrawal of research support if the naive economist were not taught a =
lesson In barnyard economics.
When someone takes your money, you presume that they will =
not turn around and bite the hand that feeds you. After all, what were =
they buying with research support if not a lap-dog?
The naive economist laughed. He was not in the banana =
economics department so the Dean could not muzzle him for not going =
native. He also had tenure.
-0-0-0-
Now, I'm sure this seems like a fairy tale. Unfortunately, =
it is not. With a little poetic license, and substituting sugar beets =
for bananas, corn fructose and other sweeteners for kumquats, University =
of Idaho for University of Vermont, and Idaho Sugarbeet Growers =
Association for ROBRS, the above fairy tale describes the sugar beet =
industry in the US and Idaho.
Including the story about the naive economist.
And the use of water and other resources that could be =
better used elsewhere.
And like a banana industry in Vermont, there should be no =
sugar beet industry in Idaho--or California, or Arizona, etc.
But worse, this fairy tale describes in microcosm the whole =
US farm program. The Department of Agriculture now has an annual budget =
in excess of $50 billion, more than the net Income of the entire =
Industry, and the cost of the various price supports, subsidies, and =
marketing orders comes to about $25 billion.
Colleges of Agriculture, with economic logic based firmly on =
banana peels, routinely support government intervention in agriculture =
markets while they also feed at the farm subsidy trough.
Part of this massive boondoggle might be justified if it =
helped low-income farmers or the poor In general. But it does just the =
opposite.
Since about 85 percent of farm income accrues to the top 30 =
percent of the farmers, and the top 1.4% of the farms have 33% of farm =
income, the whole program is primarily a massive subsidy to middle and =
upper income farmers. And since the poor spend a higher proportion of =
their incomes on food, they bear a disproportionate burden of high food =
prices.
The prospects for ridding ourselves of this huge welfare =
program are not bright. The industry Is expert at manipulating the =
political process, buying apologists, and deceiving the public with =
threats, slogans, and lies. With a straight face, they tell incredible =
stories about how pulling their subsidies would cause the industry to =
disappear and the consuming public to either starve or become hostage to =
foreign producers. The Idaho sugar beet producers even go so far as to =
state that their price support programs "operate at no taxpayer =
expense."
We often lament how our welfare programs have produced =
second and third generation urban families living on welfare. Well, we =
now have the same thing happening in agriculture.
The only difference is farm welfare is for the rich.
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<DIV>Yesterday's Daily News ran an Article by Clifton Anderson titled =
"Today's=20
big business has anti-people bias". </DIV>
<DIV> </DIV>
<DIV>The response to his peculiar view of economics ran in the Daily =
News 12=20
years ago (31 July 1991). I'm reposting it here, since I doubt that the=20
Editor would ever allow it to run again.</DIV>
<DIV> </DIV>
<DIV>Best,</DIV>
<DIV>Dale</DIV>
<DIV>
<HR>
</DIV>
<DIV align=3Dcenter><SPAN=20
style=3D"FONT-SIZE: 18pt; COLOR: black; FONT-FAMILY: Geneva; =
mso-bidi-font-size: 10.0pt">FARM=20
FAIRY TALES: BANANAS IN VERMONT, SUGAR BEETS IN IDAHO</SPAN><SPAN=20
style=3D"FONT-SIZE: 12pt; COLOR: black; FONT-FAMILY: Geneva; =
mso-bidi-font-size: 10.0pt"><?xml:namespace=20
prefix =3D o ns =3D "urn:schemas-microsoft-com:office:office"=20
/><o:p></o:p></SPAN></DIV>
<P class=3DMsoNormal=20
style=3D"tab-stops: -1.0in -.5in .5in 1.0in 1.5in 2.0in 2.5in 3.0in =
3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in 7.5in"><SPAN=20
style=3D"FONT-SIZE: 12pt; COLOR: black; FONT-FAMILY: Geneva; =
mso-bidi-font-size: 10.0pt"><o:p></o:p></SPAN></P>
<P class=3DMsoNormal=20
style=3D"tab-stops: -1.0in -.5in .5in 1.0in 1.5in 2.0in 2.5in 3.0in =
3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in 7.5in"><SPAN=20
style=3D"FONT-SIZE: 12pt; COLOR: black; FONT-FAMILY: Geneva; =
mso-bidi-font-size: 10.0pt"><SPAN=20
style=3D"mso-tab-count: =
1"> =20
</SPAN>Once upon a time, US banana producers decided they needed =
protection from=20
cheap imports.<SPAN style=3D"mso-spacerun: yes"> </SPAN>Slogans =
appeared=20
about how jobs would be created, our balance of payments improved, and=20
self-sufficiency attained by keeping out cheap banana=20
imports.<o:p></o:p></SPAN></P>
<P class=3DMsoNormal=20
style=3D"tab-stops: -1.0in -.5in .5in 1.0in 1.5in 2.0in 2.5in 3.0in =
3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in 7.5in"><SPAN=20
style=3D"FONT-SIZE: 12pt; COLOR: black; FONT-FAMILY: Geneva; =
mso-bidi-font-size: 10.0pt"><SPAN=20
style=3D"mso-tab-count: =
1"> =20
</SPAN>A quota and tariff were put on banana imports, and a price floor =
was put=20
under all bananas sold in the US at about three times the world=20
price.<o:p></o:p></SPAN></P>
<P class=3DMsoNormal=20
style=3D"tab-stops: -1.0in -.5in .5in 1.0in 1.5in 2.0in 2.5in 3.0in =
3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in 7.5in"><SPAN=20
style=3D"FONT-SIZE: 12pt; COLOR: black; FONT-FAMILY: Geneva; =
mso-bidi-font-size: 10.0pt"><SPAN=20
style=3D"mso-tab-count: =
1"> =20
</SPAN>A banana industry sprouted in Vermont.<o:p></o:p></SPAN></P>
<P class=3DMsoNormal=20
style=3D"tab-stops: -1.0in -.5in .5in 1.0in 1.5in 2.0in 2.5in 3.0in =
3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in 7.5in"><SPAN=20
style=3D"FONT-SIZE: 12pt; COLOR: black; FONT-FAMILY: Geneva; =
mso-bidi-font-size: 10.0pt"><SPAN=20
style=3D"mso-tab-count: =
1"> =20
</SPAN>There, greenhouses were built and irrigated with water drawn from =
the=20
Connecticut River.<SPAN style=3D"mso-spacerun: yes"> =
</SPAN>Propane and=20
electricity sales skyrocketed during Vermont's nine-month winter.<SPAN=20
style=3D"mso-spacerun: yes"> </SPAN>Contractors and their =
employees were=20
delighted with the boom in greenhouse building.<o:p></o:p></SPAN></P>
<P class=3DMsoNormal=20
style=3D"tab-stops: -1.0in -.5in .5in 1.0in 1.5in 2.0in 2.5in 3.0in =
3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in 7.5in"><SPAN=20
style=3D"FONT-SIZE: 12pt; COLOR: black; FONT-FAMILY: Geneva; =
mso-bidi-font-size: 10.0pt"><SPAN=20
style=3D"mso-tab-count: =
1"> =20
</SPAN>Farmers, loggers, maple syrup harvesters, and ski-resort =
employees=20
switched to the new banana Industry, causing a decline in these =
industries due=20
to rising wages and prices.<SPAN style=3D"mso-spacerun: yes"> =
</SPAN>New=20
irrigation demand caused salmon and shad runs in the Connecticut River =
to=20
plummet.<SPAN style=3D"mso-spacerun: yes"> </SPAN>Electricity =
generated by=20
the river also fell.<o:p></o:p></SPAN></P>
<P class=3DMsoNormal=20
style=3D"tab-stops: -1.0in -.5in .5in 1.0in 1.5in 2.0in 2.5in 3.0in =
3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in 7.5in"><SPAN=20
style=3D"FONT-SIZE: 12pt; COLOR: black; FONT-FAMILY: Geneva; =
mso-bidi-font-size: 10.0pt"><SPAN=20
style=3D"mso-tab-count: =
1"> =20
</SPAN>While consumers grumbled at the annual increase in their grocery =
bills,=20
Vermonters found some solace in the fact that they could buy their =
bananas at=20
half the price across the border in Canada.<o:p></o:p></SPAN></P>
<P class=3DMsoNormal=20
style=3D"tab-stops: -1.0in -.5in .5in 1.0in 1.5in 2.0in 2.5in 3.0in =
3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in 7.5in"><SPAN=20
style=3D"FONT-SIZE: 12pt; COLOR: black; FONT-FAMILY: Geneva; =
mso-bidi-font-size: 10.0pt"><SPAN=20
style=3D"mso-tab-count: =
1"> =20
</SPAN>With the doubling of the price of bananas, consumption =
declined.<SPAN=20
style=3D"mso-spacerun: yes"> </SPAN>Consumers found that =
kumquats were=20
a tasty substitute, and the demand for kumquats rose dramatically.<SPAN=20
style=3D"mso-spacerun: yes"> </SPAN>Soon kumquat production =
exceeded that of=20
bananas.<o:p></o:p></SPAN></P>
<P class=3DMsoNormal=20
style=3D"tab-stops: -1.0in -.5in .5in 1.0in 1.5in 2.0in 2.5in 3.0in =
3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in 7.5in"><SPAN=20
style=3D"FONT-SIZE: 12pt; COLOR: black; FONT-FAMILY: Geneva; =
mso-bidi-font-size: 10.0pt"><SPAN=20
style=3D"mso-tab-count: =
1"> =20
</SPAN>Other banana substitutes appeared.<SPAN style=3D"mso-spacerun: =
yes"> =20
</SPAN>The banana industry was disturbed about the rise in their sales, =
and=20
rumors appeared suggesting they might cause cancer and other health=20
problems.<o:p></o:p></SPAN></P>
<P class=3DMsoNormal=20
style=3D"tab-stops: -1.0in -.5in .5in 1.0in 1.5in 2.0in 2.5in 3.0in =
3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in 7.5in"><SPAN=20
style=3D"FONT-SIZE: 12pt; COLOR: black; FONT-FAMILY: Geneva; =
mso-bidi-font-size: 10.0pt"><SPAN=20
style=3D"mso-tab-count: =
1"> =20
</SPAN>Naturally, the College of Agriculture at the University of =
Vermont was=20
pressed into service to do research on bananas.<SPAN=20
style=3D"mso-spacerun: yes"> </SPAN>The Legislature gave money for =
banana=20
research.<SPAN style=3D"mso-spacerun: yes"> </SPAN>Producers, =
through their=20
trade association--the Royal Order of Banana Raisers Society (ROBRS)--in =
turn=20
raised additional research funds.<SPAN style=3D"mso-spacerun: =
yes"> =20
</SPAN>More plant scientists were hired and new species of bananas were=20
developed.<o:p></o:p></SPAN></P>
<P class=3DMsoNormal=20
style=3D"tab-stops: -1.0in -.5in .5in 1.0in 1.5in 2.0in 2.5in 3.0in =
3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in 7.5in"><SPAN=20
style=3D"FONT-SIZE: 12pt; COLOR: black; FONT-FAMILY: Geneva; =
mso-bidi-font-size: 10.0pt"><SPAN=20
style=3D"mso-tab-count: =
1"> =20
</SPAN>A banana economics department blossomed.<o:p></o:p></SPAN></P>
<P class=3DMsoNormal=20
style=3D"tab-stops: -1.0in -.5in .5in 1.0in 1.5in 2.0in 2.5in 3.0in =
3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in 7.5in"><SPAN=20
style=3D"FONT-SIZE: 12pt; COLOR: black; FONT-FAMILY: Geneva; =
mso-bidi-font-size: 10.0pt"><SPAN=20
style=3D"mso-tab-count: =
1"> =20
</SPAN>Every year, ROBRS held its annual convention in Miami.<SPAN=20
style=3D"mso-spacerun: yes"> </SPAN>A chartered 747 flew =
politicians,=20
together with assorted spouses and ski bunnies, to the convention.<SPAN=20
style=3D"mso-spacerun: yes"> </SPAN>Vermont's Congressional =
delegation=20
reaped honoraria for delivering speeches and pep talks to the=20
Industry.<o:p></o:p></SPAN></P>
<P class=3DMsoNormal=20
style=3D"tab-stops: -1.0in -.5in .5in 1.0in 1.5in 2.0in 2.5in 3.0in =
3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in 7.5in"><SPAN=20
style=3D"FONT-SIZE: 12pt; COLOR: black; FONT-FAMILY: Geneva; =
mso-bidi-font-size: 10.0pt"><SPAN=20
style=3D"mso-tab-count: =
1"> =20
</SPAN>At each year's convention, a Friend of Bananas was chosen from =
among=20
those politicians who had done the most to protect the industry from=20
competition.<SPAN style=3D"mso-spacerun: yes"> </SPAN>A political =
action=20
committee was set up to channel campaign funds to industry=20
supporters.<o:p></o:p></SPAN></P>
<P class=3DMsoNormal=20
style=3D"tab-stops: -1.0in -.5in .5in 1.0in 1.5in 2.0in 2.5in 3.0in =
3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in 7.5in"><SPAN=20
style=3D"FONT-SIZE: 12pt; COLOR: black; FONT-FAMILY: Geneva; =
mso-bidi-font-size: 10.0pt"><SPAN=20
style=3D"mso-tab-count: =
1"> =20
</SPAN>Each year, a Banana Festival was held and a Banana Queen=20
crowned.<o:p></o:p></SPAN></P>
<P class=3DMsoNormal=20
style=3D"tab-stops: -1.0in -.5in .5in 1.0in 1.5in 2.0in 2.5in 3.0in =
3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in 7.5in"><SPAN=20
style=3D"FONT-SIZE: 12pt; COLOR: black; FONT-FAMILY: Geneva; =
mso-bidi-font-size: 10.0pt"><SPAN=20
style=3D"mso-tab-count: =
1"> =20
</SPAN>Then one year a new economist was hired at the University of=20
Vermont.<SPAN style=3D"mso-spacerun: yes"> </SPAN>Having =
come from=20
another state, he was not familiar with the clout of Vermont's banana=20
industry.<SPAN style=3D"mso-spacerun: yes"> </SPAN>Indeed, when he =
saw a=20
naked subsidy, he was prone to declare that the emperor had no=20
clothes.<o:p></o:p></SPAN></P>
<P class=3DMsoNormal=20
style=3D"tab-stops: -1.0in -.5in .5in 1.0in 1.5in 2.0in 2.5in 3.0in =
3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in 7.5in"><SPAN=20
style=3D"FONT-SIZE: 12pt; COLOR: black; FONT-FAMILY: Geneva; =
mso-bidi-font-size: 10.0pt"><SPAN=20
style=3D"mso-tab-count: =
1"> =20
</SPAN>"What the hell are we doing growing bananas in Vermont?" he=20
said.<o:p></o:p></SPAN></P>
<P class=3DMsoNormal=20
style=3D"tab-stops: -1.0in -.5in .5in 1.0in 1.5in 2.0in 2.5in 3.0in =
3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in 7.5in"><SPAN=20
style=3D"FONT-SIZE: 12pt; COLOR: black; FONT-FAMILY: Geneva; =
mso-bidi-font-size: 10.0pt"><SPAN=20
style=3D"mso-tab-count: =
1"> =20
</SPAN>Others began to wonder too, and began to ask one another, "Why =
<U>are</U>=20
we growing bananas in Vermont?"<o:p></o:p></SPAN></P>
<P class=3DMsoNormal=20
style=3D"tab-stops: -1.0in -.5in .5in 1.0in 1.5in 2.0in 2.5in 3.0in =
3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in 7.5in"><SPAN=20
style=3D"FONT-SIZE: 12pt; COLOR: black; FONT-FAMILY: Geneva; =
mso-bidi-font-size: 10.0pt"><SPAN=20
style=3D"mso-tab-count: =
1"> =20
</SPAN>No one could think of a reason, except the banana economists who =
knew=20
where their bread was buttered.<o:p></o:p></SPAN></P>
<P class=3DMsoNormal=20
style=3D"tab-stops: -1.0in -.5in .5in 1.0in 1.5in 2.0in 2.5in 3.0in =
3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in 7.5in"><SPAN=20
style=3D"FONT-SIZE: 12pt; COLOR: black; FONT-FAMILY: Geneva; =
mso-bidi-font-size: 10.0pt"><SPAN=20
style=3D"mso-tab-count: =
1"> =20
</SPAN>The naive economist even went so far as to join a group of =
nationally=20
prominent economists, some of whom were Nobel Prize winners, in advising =
Congress to remove the tariffs, quotas, and price supports that had =
doubled the=20
price of bananas to the consumer.<o:p></o:p></SPAN></P>
<P class=3DMsoNormal=20
style=3D"MARGIN-LEFT: 0.5in; tab-stops: -1.0in -.5in .5in 1.0in 1.5in =
2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in =
7.5in"><SPAN=20
style=3D"FONT-SIZE: 12pt; COLOR: black; FONT-FAMILY: Geneva; =
mso-bidi-font-size: 10.0pt">Predictably,=20
ROBRS went bananas.<o:p></o:p></SPAN></P>
<P class=3DMsoNormal=20
style=3D"tab-stops: -1.0in -.5in .5in 1.0in 1.5in 2.0in 2.5in 3.0in =
3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in 7.5in"><SPAN=20
style=3D"FONT-SIZE: 12pt; COLOR: black; FONT-FAMILY: Geneva; =
mso-bidi-font-size: 10.0pt"><SPAN=20
style=3D"mso-tab-count: =
1"> =20
</SPAN>Letters demanding that the economist be muzzled were sent to the=20
Governor, the President of UVM, and the Dean of the College of=20
Agriculture.<o:p></o:p></SPAN></P>
<P class=3DMsoNormal=20
style=3D"tab-stops: -1.0in -.5in .5in 1.0in 1.5in 2.0in 2.5in 3.0in =
3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in 7.5in"><SPAN=20
style=3D"FONT-SIZE: 12pt; COLOR: black; FONT-FAMILY: Geneva; =
mso-bidi-font-size: 10.0pt"><SPAN=20
style=3D"mso-tab-count: =
1"> =20
</SPAN>A letter was also sent to the naive economist protesting his =
opposition=20
to protection of the banana industry, and demanding that he publicly=20
disassociate himself from the other economists.<o:p></o:p></SPAN></P>
<P class=3DMsoNormal=20
style=3D"tab-stops: -1.0in -.5in .5in 1.0in 1.5in 2.0in 2.5in 3.0in =
3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in 7.5in"><SPAN=20
style=3D"FONT-SIZE: 12pt; COLOR: black; FONT-FAMILY: Geneva; =
mso-bidi-font-size: 10.0pt"><SPAN=20
style=3D"mso-tab-count: =
1"> =20
</SPAN>ROBRS threatened the Vermont College of Agriculture with =
withdrawal of=20
research support if the naive economist were not taught a lesson In =
barnyard=20
economics.<o:p></o:p></SPAN></P>
<P class=3DMsoNormal=20
style=3D"tab-stops: -1.0in -.5in .5in 1.0in 1.5in 2.0in 2.5in 3.0in =
3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in 7.5in"><SPAN=20
style=3D"FONT-SIZE: 12pt; COLOR: black; FONT-FAMILY: Geneva; =
mso-bidi-font-size: 10.0pt"><SPAN=20
style=3D"mso-tab-count: =
1"> =20
</SPAN>When someone takes your money, you presume that they will not =
turn around=20
and bite the hand that feeds you.<SPAN style=3D"mso-spacerun: =
yes"> =20
</SPAN>After all, what were they buying with research support if not a=20
lap-dog?<o:p></o:p></SPAN></P>
<P class=3DMsoNormal=20
style=3D"tab-stops: -1.0in -.5in .5in 1.0in 1.5in 2.0in 2.5in 3.0in =
3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in 7.5in"><SPAN=20
style=3D"FONT-SIZE: 12pt; COLOR: black; FONT-FAMILY: Geneva; =
mso-bidi-font-size: 10.0pt"><SPAN=20
style=3D"mso-tab-count: =
1"> =20
</SPAN>The naive economist laughed.<SPAN style=3D"mso-spacerun: =
yes"> =20
</SPAN>He was not in the banana economics department so the Dean could =
not=20
muzzle him for not going native.<SPAN style=3D"mso-spacerun: yes"> =
</SPAN>He=20
also had tenure.<o:p></o:p></SPAN></P>
<P class=3DMsoNormal=20
style=3D"TEXT-ALIGN: center; tab-stops: -1.0in -.5in .5in 1.0in 1.5in =
2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in 7.5in" =
align=3Dcenter><SPAN=20
style=3D"FONT-SIZE: 12pt; COLOR: black; FONT-FAMILY: Geneva; =
mso-bidi-font-size: 10.0pt">-0-0-0-<o:p></o:p></SPAN></P>
<P class=3DMsoNormal=20
style=3D"tab-stops: -1.0in -.5in .5in 1.0in 1.5in 2.0in 2.5in 3.0in =
3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in 7.5in"><SPAN=20
style=3D"FONT-SIZE: 12pt; COLOR: black; FONT-FAMILY: Geneva; =
mso-bidi-font-size: 10.0pt"><SPAN=20
style=3D"mso-tab-count: =
1"> =20
</SPAN>Now, I'm sure this seems like a fairy tale.<SPAN=20
style=3D"mso-spacerun: yes"> </SPAN>Unfortunately, it is not.<SPAN =
style=3D"mso-spacerun: yes"> </SPAN>With a little poetic =
license, and=20
substituting sugar beets for bananas, corn fructose and other sweeteners =
for=20
kumquats, University of Idaho for University of Vermont, and Idaho =
Sugarbeet=20
Growers Association for ROBRS, the above fairy tale describes the sugar =
beet=20
industry in the US and Idaho.<o:p></o:p></SPAN></P>
<P class=3DMsoNormal=20
style=3D"tab-stops: -1.0in -.5in .5in 1.0in 1.5in 2.0in 2.5in 3.0in =
3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in 7.5in"><SPAN=20
style=3D"FONT-SIZE: 12pt; COLOR: black; FONT-FAMILY: Geneva; =
mso-bidi-font-size: 10.0pt"><SPAN=20
style=3D"mso-tab-count: =
1"> =20
</SPAN>Including the story about the naive =
economist.<o:p></o:p></SPAN></P>
<P class=3DMsoNormal=20
style=3D"tab-stops: -1.0in -.5in .5in 1.0in 1.5in 2.0in 2.5in 3.0in =
3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in 7.5in"><SPAN=20
style=3D"FONT-SIZE: 12pt; COLOR: black; FONT-FAMILY: Geneva; =
mso-bidi-font-size: 10.0pt"><SPAN=20
style=3D"mso-tab-count: =
1"> =20
</SPAN>And the use of water and other resources that could be better =
used=20
elsewhere.<o:p></o:p></SPAN></P>
<P class=3DMsoNormal=20
style=3D"tab-stops: -1.0in -.5in .5in 1.0in 1.5in 2.0in 2.5in 3.0in =
3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in 7.5in"><SPAN=20
style=3D"FONT-SIZE: 12pt; COLOR: black; FONT-FAMILY: Geneva; =
mso-bidi-font-size: 10.0pt"><SPAN=20
style=3D"mso-tab-count: =
1"> =20
</SPAN>And like a banana industry in Vermont, there should be no sugar =
beet=20
industry in Idaho--or California, or Arizona, etc.<o:p></o:p></SPAN></P>
<P class=3DMsoNormal=20
style=3D"tab-stops: -1.0in -.5in .5in 1.0in 1.5in 2.0in 2.5in 3.0in =
3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in 7.5in"><SPAN=20
style=3D"FONT-SIZE: 12pt; COLOR: black; FONT-FAMILY: Geneva; =
mso-bidi-font-size: 10.0pt"><SPAN=20
style=3D"mso-tab-count: =
1"> =20
</SPAN>But worse, this fairy tale describes in microcosm the whole US =
farm=20
program.<SPAN style=3D"mso-spacerun: yes"> </SPAN>The Department =
of=20
Agriculture now has an annual budget in excess of $50 billion, more than =
the net=20
Income of the entire Industry, and the cost of the various price =
supports,=20
subsidies, and marketing orders comes to about $25=20
billion.<o:p></o:p></SPAN></P>
<P class=3DMsoNormal=20
style=3D"tab-stops: -1.0in -.5in .5in 1.0in 1.5in 2.0in 2.5in 3.0in =
3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in 7.5in"><SPAN=20
style=3D"FONT-SIZE: 12pt; COLOR: black; FONT-FAMILY: Geneva; =
mso-bidi-font-size: 10.0pt"><SPAN=20
style=3D"mso-tab-count: =
1"> =20
</SPAN>Colleges of Agriculture, with economic logic based firmly on =
banana=20
peels, routinely support government intervention in agriculture markets =
while=20
they also feed at the farm subsidy trough.<o:p></o:p></SPAN></P>
<P class=3DMsoNormal=20
style=3D"tab-stops: -1.0in -.5in .5in 1.0in 1.5in 2.0in 2.5in 3.0in =
3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in 7.5in"><SPAN=20
style=3D"FONT-SIZE: 12pt; COLOR: black; FONT-FAMILY: Geneva; =
mso-bidi-font-size: 10.0pt"><SPAN=20
style=3D"mso-tab-count: =
1"> =20
</SPAN>Part of this massive boondoggle might be justified if it helped=20
low-income farmers or the poor In general.<SPAN style=3D"mso-spacerun: =
yes"> =20
</SPAN>But it does just the opposite.<o:p></o:p></SPAN></P>
<P class=3DMsoNormal=20
style=3D"tab-stops: -1.0in -.5in .5in 1.0in 1.5in 2.0in 2.5in 3.0in =
3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in 7.5in"><SPAN=20
style=3D"FONT-SIZE: 12pt; COLOR: black; FONT-FAMILY: Geneva; =
mso-bidi-font-size: 10.0pt"><SPAN=20
style=3D"mso-tab-count: =
1"> =20
</SPAN>Since about 85 percent of farm income accrues to the top 30 =
percent of=20
the farmers, and the top 1.4% of the farms have 33% of farm income, the =
whole=20
program is primarily a massive subsidy to middle and upper income =
farmers.<SPAN=20
style=3D"mso-spacerun: yes"> </SPAN>And since the poor spend a =
higher=20
proportion of their incomes on food, they bear a disproportionate burden =
of high=20
food prices.<o:p></o:p></SPAN></P>
<P class=3DMsoNormal=20
style=3D"tab-stops: -1.0in -.5in .5in 1.0in 1.5in 2.0in 2.5in 3.0in =
3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in 7.5in"><SPAN=20
style=3D"FONT-SIZE: 12pt; COLOR: black; FONT-FAMILY: Geneva; =
mso-bidi-font-size: 10.0pt"><SPAN=20
style=3D"mso-tab-count: =
1"> =20
</SPAN>The prospects for ridding ourselves of this huge welfare program =
are not=20
bright.<SPAN style=3D"mso-spacerun: yes"> </SPAN>The industry Is =
expert at=20
manipulating the political process, buying apologists, and deceiving the =
public=20
with threats, slogans, and lies.<SPAN style=3D"mso-spacerun: yes"> =
</SPAN>With a straight face, they tell incredible stories about how =
pulling=20
their subsidies would cause the industry to disappear and the consuming =
public=20
to either starve or become hostage to foreign producers.<SPAN=20
style=3D"mso-spacerun: yes"> </SPAN>The Idaho sugar beet producers =
even go=20
so far as to state that their price support programs "operate at no =
taxpayer=20
expense."<o:p></o:p></SPAN></P>
<P class=3DMsoNormal=20
style=3D"tab-stops: -1.0in -.5in .5in 1.0in 1.5in 2.0in 2.5in 3.0in =
3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in 7.5in"><SPAN=20
style=3D"FONT-SIZE: 12pt; COLOR: black; FONT-FAMILY: Geneva; =
mso-bidi-font-size: 10.0pt"><SPAN=20
style=3D"mso-tab-count: =
1"> =20
</SPAN>We often lament how our welfare programs have produced second and =
third=20
generation urban families living on welfare.<SPAN=20
style=3D"mso-spacerun: yes"> </SPAN>Well, we now have the same =
thing=20
happening in agriculture.<o:p></o:p></SPAN></P>
<P class=3DMsoNormal=20
style=3D"tab-stops: -1.0in -.5in .5in 1.0in 1.5in 2.0in 2.5in 3.0in =
3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in 7.5in"><SPAN=20
style=3D"FONT-SIZE: 12pt; COLOR: black; FONT-FAMILY: Geneva; =
mso-bidi-font-size: 10.0pt"><SPAN=20
style=3D"mso-tab-count: =
1"> =20
</SPAN>The only difference is farm welfare is for the=20
rich.</SPAN></P></BODY></HTML>
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