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aww07 - and would have to buy from other countries By...

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Alyson West ECO2023-03 3/27/09 Chapter 21 1. U.S. corn subsidies hurt Mexican farmers by the Mexican framers earn less money. Because of the subsidy, the U.S. corn farmers can sell their grain at prices below what it costs to produce it. Mexican farmers don’t have this benefit and thus they still have to cover their costs of producing the corn which means that they have to charge a higher price so that they can make earnings and thus with a higher price means less people that will buy from the Mexican farmers because people tend to go the lower prices. 2. Subsidies continue to be voted in by congress because it appeals to the farmers. The farmers claim that they need these subsidies and without it, the U.S. would not have its own countries farm products
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Unformatted text preview: and would have to buy from other countries. By providing the subsidies to the U.S. farms, the U.S. will also reap the benefits of the product as the farmers are able to sell back at a price below what it cost to produce it. 3. The mom and pop farms would be the major beneficiaries of the elimination of farm subsidies because the subsidies mostly appeal to the large farmers and now since the large farmers don’t have this, it is more of a risk for them to continue producing at such a great abundance because if something goes wrong, they will be hurt economically. Also with the mom and pop farms, the prices will not be somewhat more equal because without these subsidies, large farm owners cannot sell at a price below what it costs to produce....
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