From EconomicPolicyJournal.com, “Demand is So Strong for Government Program Paying Farmers Not to Plant Crops That Some Were Turned Away“. This is nothing new, the federal government has been paying farmers not to produce for decades. This is known as a producers policy, meaning that it benefits producers at the expense of consumers. In this instance, it is a double whammy for consumers. The federal government taxes consumers to pay farmers to restrict food supplies which in turn raises the price of food.
Surprisingly, raising the price of food hurts poor people. Ah, the curse of inteventionism rears its ugly head. To correct the problem, the government issues welfare in the form of food stamps (Over 46 Million Americans On Foodstamps). Of course the problem is that the government must tax other consumers to pay for the food stamps program, the third whammy for this group of consumers.
Despite the fact that consumers who suffer all three whammies vastly outnumber farmers, the government still pursues this policy. To repeat the lament expressed in my blog post, Why Inflation is Immoral, why do we permit this to occur?