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Current farm policy is institutionalized penalization of [#permalink]
03 May 2008, 01:03
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Current farm policy is institutionalized penalization of consumers. It increases food prices for middle- and low-income families and costs the taxpayer billions of dollars a year.
Which of the following statements, if true, would provide support for the authors claims above? I. Farm subsidies amount to roughly $20 billion a year in federal payouts and $12 billion more in higher food prices. II. According to a study by the Department of Agriculture, each $1 of benefits provided to farmers for ethanol production costs consumers and taxpayers $4. III.The average full-time farmers have an average net worth of over $300,000.
Re: CR: Farm Subsidies [#permalink]
08 May 2008, 14:07
Statement 1 notes the costs consumers $12B in higher food costs
Statement 2 does not clealry result in higher costs to consumers. It is plausible the $4 results in greater savings than the same amount. The statement only tells us the cost of the $1 of benefits provided to farmers and not whether the subsidy increases food prices.
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