How does the politics of farm policy explain why costly and expensive farm programs have persisted in the United States despite a decline in the farm population and in the political power of the farm vote?
What will be an ideal response?
Public choice theory helps explain this development. Farm organizations have exhibited “rent-seeking behavior” over the years, which has been designed to craft farm legislation that will transfer income to farmers and farm states at the expense of the general public. In essence, farm groups and organizations are powerful special interests that work to get benefits for farmers at the expense of taxpayers who may not be aware of the full cost of the farm subsidies because they are relatively minor for each taxpayer. Political logrolling can also be used by farm state legislators to trade votes on different legislation to turn uncertain or negative outcomes for farmers into legislation that results in higher incomes or subsidies for farmers. Furthermore, the benefits of the farm legislation are often clear, especially when many farmers are threatened with bankruptcy or poverty, but the costs of the farm programs are often hidden or not fully understood because they accrue over time.
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a. Supply would decrease, leading to an increase in price and a reduction in quantity sold. b. Supply would decrease, leading to a reduction in price and a reduction in quantity sold. c. Supply would increase, leading to an increase in price and an increase in quantity sold. d. Supply would increase, leading to a reduction in price and an increase in quantity sold.
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