In going over a course on the history of the modern Chinese economy I encountered the Xiaogang phenomenon of family farmers organizing home responsibility systems for farming plots covertly in an era of full commune collective farming. The H.R.S. were so much more productive than collectives that the Deng leadership eventually transitioned the entire national farming system to H.R.S. One has to wonder how the Communist Chinese in the de-collectivizing era managed to eliminate farm subsidies yet the United States government hasn't.
There are of course innumerable areas in the modern era where government need be involved with economic management to prevent enormities from developing that harm millions. It may be necessary eventually to establish a basic income for all Americans in order to allow cherry picking of business ventures that are ecospherically beneficially rather than deleterious. Such a level of careful examination of the effects of business ventures a priori would tend to leave people jobless periodically as a transition to sustainability was evolved. A.I displacement of jobs is another probable cause for large numbers of people losing income.
China's experience with gradual economic reform showed the difficulty of privatizing state owned enterprises until they have economic failure. Creating efficiency in government operations is important in democracies as communist societies evolving toward privatization even as they continue a policy of state social insurance for the well being of citizens.
Shouldn't there be a positive correlation between Federal spending, economic growth and reduction of public debt?
Farm subsidies apparently mostly go to large firms with concentrated wealth rather than small farmers. This is what A.I. reported about farm subsidies;
"How are subsidies distributed?
The majority of subsidies go to the largest producers of corn, soybeans, wheat, cotton, and rice
Most other agriculture, like fruits, vegetables, and tree nuts, receives minimal government support
Some subsidies, like import tariffs, generate tax revenue for the government
What are the criticisms of farm subsidies?
They can harm the environment and public health
They can distort planting decisions
They can lead to overproduction
They can inflate land values
They can discourage farmers from innovating and cutting costs
They can steer resources to households with higher incomes."
So I wonder if there are lessons to be learned from the Chinese economic transition period from collective to private farming that may be applied in the United States to increase farm productivity. With the cost of food being so high even marginal decreases in cost would be useful to consumers.
No comments:
Post a Comment