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OPINION TERRORISM: Cut Waste First
Thursday, September 27, 2001
The Florida Times-Union

The United States is entering a potentially costly war on terrorism, and some marginal domestic programs may have to be cut to help pay for it. Farm subsidies would be a good place to start.

This summer, the House Agriculture Committee approved a plan to spend $170 billion on farm programs over 10 years. But $74 billion of that money was to come from projected budget surpluses that, because of shrinking tax revenues, now appear unlikely to materialize. The deficit problem will only get worse as the government begins paying its bills for the war in Afghanistan and other efforts, domestic and foreign, to root out terrorism.

Economists say spending under the bill would exceed the annual subsidy limits the United States must meet under its World Trade Organization obligations.

In this economic downturn, this country cannot afford to start a global trade war.

U.S. Sens. Richard Lugar, R-Ind., and Tom Harkin, D-Iowa, said government payments should be limited to those "actively involved in farming and ranching."

That at least would end the practice of absentee owners getting subsidies.

But the Lugar-Harkin plan isn't enough. All farm subsidies should be phased out, as the Freedom to Farm Act of 1996 intended. Some farmers might leave the business. But it would be no different from an oversupply of computer chips driving a chip maker out of business or too much competition forcing a restaurant to close its doors.
(The Florida Times-Union News Source)
© The Florida Times-Union

Dan