Donald Trump, tariffs and handouts to farmers
Following Donald Trump’s actions to create a tariff/trade war with China, soybean commodity prices have dropped more than 17 percent for the quarter and more than 10 percent for the year. Like drops in stock market investments, this drop in prices means exactly the same thing for the soybean farmer — a substantial loss in net worth.
That crop has a real worth in terms of the price at which it can be sold, and Mr. Trump’s fight has substantially affected that price. What is the administration’s answer for this? It is asking for a subsidy in the amount of $12 billion for the farmers. Of course, “subsidy” simply means “welfare,” and the American taxpayer pays twice — once for the loss in commodity prices and a second time for the welfare payment.
How is that wonderful economic state promised by Mr. Trump working out for his supporters?
