Food Shortage, Economics, and Politics

This week in my Macroeconomics class we have been discussing the U.S. Wheat Market and how it has been affected by government intervention. Although this started as a simple exercise to explain shifts in supply and demand it has opened my eyes to something that I consider extremely morally wrong; government created food shortages.

Starting in 1929 the U.S. Government began implementing Farm Stabilization Acts. Although the goal was to stabilize prices and help small farmers it really hurt the average consumer. The government began buying up massive amounts of wheat in order to increase the demand, thus raising the price and quantity. However this supply was futile for it was not being used. Furthermore the wheat was bought using taxpayer dollars, meaning taxpayers and everyday consumers were paying for wheat they would never see and driving prices up on themselves. I understand the government's actions economically, however it is how the wheat was used that really kills me.

Initially the wheat was simply stored, however soon there was too much. The government began destroying crops and killing/drowning ranch animals. They wanted to limit the supply, keep food out of the consumers hands to "help" the economy. Finally they started paying farmers not to grow crops, a system that seems pointless and dangerously similar to welfare.

While all of these actions have some economic reasoning I just can't grasp the concept of government created food shortages, at least in America. Food scarcity is one of the greatest problems in the world today; thousands of people worldwide die everyday from malnutrition and lack of food, some even here in the United States. Looking from a moral humanitarian aspect I see this program as entirely wrong and simply outrageous. Our government is here to protect us, help us, and contribute to a happy healthy life. This just shows the power that lobbyist and special interest groups (farmers in this case) can have on the entire system and how that influence can hurt us all.

So, the next time bread, egg, or milk prices go up again you can make sure to thank good ole' Uncle Sam.