Skip to comments.Dust Bowl Economics: Trump wants taxpayers to bail out farmers hurt by his trade war.
Posted on 07/12/2018 4:59:13 AM PDT by reaganaut1
When pork prices collapsed amid a global trade war during the Great Depression, the Roosevelt Administration in 1933 had an ideaslaughter six million piglets. Put a floor under prices by destroying supply. It didnt work. Now the Trump Administration may try its own version of Depressionomics by using the Commodity Credit Corporation (CCC) to support crop prices walloped by the Trump tariffs: Hurt farmers and then put them on the government dole. How about not hurting them in the first place?
Thats the question as Mr. Trump escalates his trade war, on Wednesday proposing 10% tariffs on $200 billion in additional Chinese goods. China says it is shocked by the new border taxes and will look to retaliate againand no doubt U.S. agriculture will again be one of its main targets.
Enter the forgotten but alas not gone CCC, the financial institution that FDR charged with solving the problem of depressed markets caused by weak demand. Farmers were told to plant less in exchange for a floor under prices. The CCC financed the purchase of surpluses through nonrecourse loans to farmers, and held the crops in storage.
When market demand improved, the Agriculture Department was supposed to sell the stored commodities at higher prices. Nonrecourse meant that the farmer didnt have to repay the loan, and the USDA often couldnt unload the surpluses because demand didnt recover.
The Depression ended but the CCC kept going. In 2012 Congress put limits on CCC purchases of surplus commodities and on price supports after the Obama Administration used it for a costly 2009 disaster program without Congressional approval. But then out of the blue this year, Congress lifted the limits on CCCs power to remove surplus crops from the market to support prices.
(Excerpt) Read more at wsj.com ...
The so-called farm bill is always loaded with all kinds of pork.
Love 95% of what Trump does. Love it.
But I DON’T agree with Trump on tariffs. Sure you *may* be able to help farmers somewhat, but you can’t help all the people hurt by the new tariffs.
Then count yourself as free traitor and not part of the MAGA revolution.
The corn ethanol war? Pork and beef war with china.? Barter town
Wars have casualties and trade wars are no different than any other war. You accept the fact that there will be short term pain in the expectation that there will be long term gain. If the Administration is going to try and bail out every sector of the economy that gets hurt then it’s going to get very expensive, very fast.
We expert agri products ( the ghetto of economic wealth creation ) and import high tech consumer electronics. That’s so smart. /sarc
You may look forward to them. Thanks to the repeal of country of origin labeling, US consumers have no idea where their beef and pork muscle are coming from, at least if they buy from a grocer.
The trade “war” was already on, we were just not firing back!
Hanging Free Traitors, the job Americans won't do -- yet.
Loss of export markets may well lead to a short term glut on the U.S. market and domestic prices may fall. But if the pork producers can't make money off their pigs then they'll stop raising them. You will see farmers cut back on supply rather quickly, and your bacon and pork prices will probably remain steady if not go up on the long term.
Tariffs are key part of MAGA
So what? Why do I give sh!t about pig farmers, one of the biggest employers of illegal and imported stoop labor?
The President said “Temporary Pain.”
It’s a trade war. You don’t win by laying down, by shilling for the other side.
Yup. I am not 100% sure, but I suspect they also have had a part in North Korea’s sudden cooperation.
The price of pork is X amount; for US and foreign customers.
Add a Tariff for foreign sales.
It now costs X+T for foreigners.
Foreigners now pissed. Shop around for cheaper pork.
Other countries rub hands in glee; raising THEIR pork prices by at least a fraction of T. Cannot get their pigs to mate faster. America has lots of pigs.
Coyotes gonna bring ‘refugee immigrants’ in and take wanted porkies out?
Read the article. The U.S. government will prop up the pork prices to keep you paying top dollar for those port roads and bacon before they ever let you enjoy those "bargain prices."
Oh -- and they'll do it using YOUR tax money. So you'll be subsidizing your friendly neighborhood pork farmer twice.
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