TJP

Subsidizing the Rich

Byron A. Ellis

December 15, 2007

When the U.S. government provides subsidy to the poor there is always a negative connotation; critics label them as lazy and undeserving. However, when subsidies are given to the middle class, the rich, and foreign government there is no negative connotation; every year the U.S. government provides large subsidies to Israel, Pakistan, and Egypt.

The $286 billion farm bill, passed by the Senate on a 79-14 vote, subsidizes oat, barley, soybeans, wheat, and other crops; it even creates new grants for vegetable and fruit growers.

A farm subsidy is basically financial aid, taxpayers’ money, which legislators provide to farmers. It acts like a reduction in input price for the subsidized crops. Thus, providing extra income to farmers.

Fairness requires that Congress also provide a central city bill, where inner city businesses, education, and housing are provided with subsidies equal to the farm bill funding. And, they should start by immediately subsidizing housing for Katrina’s homeless.

The central city subsidy bill would reduce the cost of operating inner city businesses, and the price of education and housing to distressed residents.

The question to Congress is why should rich farmers receive more subsidies than the poor and homeless. It appears from the current redistribution of tax revenues that the policy of Congress is to ignore distressed communities.

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