Amelia Vayda, Chapter 8, Question 6

In chapter 8 of Naked Economics Wheelan discusses government policies, one example that he brings up is farmers and how they are given federal government subsidies. They were given subsidies because in the times of the wars the yarn from mohairs were used to make military uniforms. Farmers are still gaining Federal Government money. Later on in the chapter he brings up how agriculturists in other counties like China and India do not get subsidies they are forced to sell their crops below the market price because the government wants the "urban dwellers" to get food at a cheap or low price. These passages about policy for farmers were interesting to see because in a large population the farmers have to sell their goods but with no help from the government, but in the other countries who have a smaller populations the farmers are getting help from the government. To me this is partly fair and unfair. Countries with large populations should have subsidies because the government can gain more money through taxes. Since the farmers in these larger countries are forced to sell their crops at lower prices they are making less money which in turn can hurt the farmers financially. As for the smaller counties I believe that it is still fair to give subsidies to the farmers because everyone gains from it. Since they are getting subsidies then they can still ask for less money for the crops which means that more people can buy them. It also means that the farmers are not putting themselves in a financial crisis. This whole view on how different countries give out subsidies is memorable and interesting.