Browsing the archives for the Archer-Daniels-Midland Company tag.

Agricultural Merry-Go-Round

Bailouts, Economy, Energy, Fiscal Crisis, Liberty, Obama, Politics, Taxes

 

A recent article in the New York Times, “Once Stigmatized, Food Stamps Find Acceptance,” talks about how Food Stamps are now, thankfully, accepted and people can get the help they deserve. 

I remember the first time I encountered food stamps.  I was in line at the grocery store behind a woman with a cart piled high and among its contents were soda, potato chips, and other tasty luxuries.  When the bill was tallied, she took out her book of food stamps and handed them to the cashier.  I related this story to a friend who told me that you can’t use food stamps on junk food so it must have been applied against the other items in the cart.  Even so, I thought back to when I grew up.  We weren’t poor but we were no where near rich.  Things like soda and potato chips were a rarity reserved only for those times when relatives were coming from a distance for a visit.  Otherwise it was home brewed ice tea and supermarket generic cookies.  But even those treats weren’t purchased through a subsidy of our food staples.

New York is now actively recruiting new food stamp recipients in all languages imaginable.  It seems that it is not enough to provide the service but you have to make sure that everyone who can get food stamps is taking advantage of them.  Let’s see, government employees paid by taxpayers going all out to make sure that a taxpayer funded program is using as much taxpayer money as possible including a program on Rikers Island (the city jail) to enroll inmates as the leave.  The article describes one woman who was actively recruited to join the program:

A big woman with a broad smile, Ms. Bostick-Thomas swept into the group’s office a few days later, talking up her daughters’ college degrees and bemoaning the cost of oxtail meat.

“I’m not saying I go hungry,” Ms. Bostick-Thomas said. “But I can’t always eat what I want.”

Okay, I’m going to go out on a limb here.  By a “big woman” can we take that observation to mean she is not lacking in caloric intake?  She says she doesn’t go hungry.  She talks about her daughter’s college degrees.  So why are taxpayers tasked with helping her eat what she wants?  And what is that anyway?  Steak? Lobster?  Twinkies?  Ice cream?  Why aren’t the daughters with their college degrees helping their mother?  Maybe they could invite her over once a week and feed her the foods she favors?  And if they are not local, why not ship her a box of Omaha Steaks?  Why does some other taxpayer have to pick up the tab for her after they worked hard to feed their own family?

The Other Side of the Coin

On the other side of the coin, from the budget of the same Department of Agriculture, we pay farmers not to grow food in the form of farm subsidies.  Why?  Well, if we didn’t, the prices of farm products, aka food, would become too cheap for the farmers to make a decent living.  In my simple economic model of supply and demand that would seem to indicate that maybe we have more farmers than we need.  But you see farming is a way of life as much as it is an occupation, and taxpayers must be sensitive to preserving that way of life whether or not it is economically justified.  I am sure there are several million unemployed people in this country who would like to have their jobs subsidized.  Unemployment compensation is when the government gives you a check (actually its funded by your employer) when you lose your job.  Farm subsidies are when the government (no employer funding here) pays farmers to keep working at their job.

Add to that another government program to pay farmers to produce corn to make ethanol, another uneconomic subsidy.  Ethanol is pitched as a substitute for gasoline, but it takes a lot of energy to make it, it cannot be transported via pipeline like petroleum products, and when the corn is diverted to produce ethanol, the cost of almost all food goes up.  Corn is used for feed for cattle, as seed to produce corn, for corn syrup as a sweeter.  So on top of regular farm subsidies, we have ethanol subsidies to further drive up food prices.  In the case of corn syrup, sugar could be a substitute, but our government places a very high tariff on imported sugar, to protect our domestic sugar producers.

Coming Full Circle

So, on the one hand we have several government programs, funded by taxpayers, that drive up the price of food.  Then we have another program, taxpayer funded, to help people buy food because food is too expensive.  And then we have government workers and programs, taxpayer funded, that are actively marketing the food stamp program to overweight people, who never go hungry, have college educated children who could help them but don’t seem to, so that the recipient can eat the things she wants to.  But if you see a problem with this, don’t worry.  Michele Obama is about to use more taxpayer dollars to launch a program to fight childhood obesity.  Can we get off this Merry-Go-Round?

How about we shut down the Department of Agriculture?  It’s function is not in the Constitution and so it should not exist at the federal level.  End farm subsidies.  If that means we have a few less farmers, so be it.  The American people do not owe anyone other than themselves a way of life.  To the farmer who can make it, you have my complete admiration.  End ethanol subsidies.  If ethanol is a viable fuel, it should be able succeed on its own, not because Archer Daniels Midland spends millions on agricultural lobbyists. Negotiate free trade agreements so that our successful farmers, instead of being paid not to produce, produce and sell their goods around the world.  Likewise end high tariffs that protect our farm products.  These steps should lower the cost of food.

With lower food costs we shouldn’t need a food stamp program.  End it at the federal level along with the Department of Agriculture. If there continues to be a need it will probably be a much smaller one and let each state decide if it wants to start its own program.  Also, with everyone saving on food there is a greater likelihood for people to contribute to food banks to help the truly needy.  But to have one government program create a problem and another government program to try to solve it is lunacy.

With our economy hurtling toward a cliff with out of control spending, we don’t need to be on both sides of a problem.

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To Protect and Defend

2008 Election, Clinton, Liberty, Media, Obama, Politics, Supreme Court

“I do solemnly swear that I will faithfully execute the Office of President of the United States, and will to the best of my Ability, preserve, protect, and defend the Constitution of the United States.”  – Presidential Oath of Office,  Constitution of the United States of America, Article II, Section I

“Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press, or the right of the people to peaceably assemble, and to petition the Government for a redress of grievances.” — Constitution of the United States of America, First Amendment.

“This ruling strikes at our democracy itself,” Mr. Obama said, adding: “I can’t think of anything more devastating to the public interest. The last thing we need to do is hand more influence to the lobbyists in Washington, or more power to the special interests to tip the outcome of elections.” — NY Times, January 25, 2010

Last week in Citizens United v. Federal Election Commission the Supreme Court struck down a provision in the McCain-Feingold campaign finance reform bill that prohibited “electioneering communication”, that is, broadcast ads that name a federal candidate within 30 days of a primary election or within 60 days of a general election.  It is what I and many others dub the “Incumbent Protection Act”, because it tips the scales heavily in favor of incumbents who have the name recognition, and the communication power of their office as an advantage in an election.  In addition, the 30 days or 60 days are when many voters really start paying attention.  Our elected representatives love to talk tough about reform, but that reform typically ends up making it harder to replace them.

Obama Weighs In

As the above quotes demonstrate, President Obama’s job is to uphold the Constitution.  The Constitution protects free speech.  So why is President Obama attacking a Supreme Court ruling that protects Free Speech?  Is that what he is supposed to be doing?  Instead he says it “strikes at democracy itself.”  He doesn’t mention that it also lifts restrictions on the speech of unions that typically favor the positions of his party.  Perhaps that is because with the Obama administration unions have extraordinary access to the White House. From January to July, White House logs show that Andy Stern, President of the Service Employees International Union (SEIU) visited the White House 22 times, more than anyone else in the visitor logs.

If President Obama is truly concerned about the influence of lobbyists, it does no good to drive them out of advertising on TV into personal visits to the White House.  Of course, the president would be selective in who has an audience with him.  If you really want to reduce the number of lobbyists, then reduce the reasons for them to lobby.  If, for example, you want to reduce the lobbying effort of the giant agricultural corporation Archer Daniels Midland, then get the government out of the business of ethanol subsidies, farm subsidies, and shut down the federal Department of Agriculture.   Lobbyists will call on Washington less, if they have less to call about.  Shrinking the federal government will reduce the number of lobbyists and their influence, reduce the deficit, help balance the budget, and make the government more manageable so that we can reduce or eliminate waste and fraud.

Supreme Court Justice John Paul Stevens blasted the Supreme Court’s 5-4 decision saying that the ruling is not grounded in the writings of the Founding Fathers.  His argument being that certain groups could have their speech curtailed and only individuals had their speech protected.  Justice Antonin Scalia wrote a separate concurring opinion to address Stevens argument.  In part:

“I write separately to address JUSTICE STEVENS’ discussion of “Original Understandings”… This section of [Stevens'] dissent purports to show that today’s decision is not supported by the original understanding of the First Amendment. The dissent attempts this demonstration, however, in splendid isolation from the text of the First Amendment. It never shows why “the freedom of speech” that was the right of Englishmen did not include the freedom to speak in association with other individuals, including association in the corporate form. To be sure, in 1791 (as now) corporations could pursue only the objectives set forth in their charters; but the dissent provides no evidence that their speech in the pursuit of those objectives could be censored….

The [First] Amendment is written in terms of “speech,” not speakers. Its text offers no foothold for excluding any category of speaker, from single individuals to partnerships of individuals, to unincorporated associations of individuals, to incorporated associations of individuals–and the dissent offers no evidence about the original meaning of the text to support any such exclusion. We are therefore simply left with the question whether the speech at issue in this case is “speech” covered by the First Amendment. No one says otherwise.” – Antonin Scalia, concurring opinion in “Citizens United v. Federal Election Commission

Newly seated Justice Sonia Sotomayor voted against free speech.  I always marvel when people who succeed against tough odds attack the very principles of this country that allowed them to succeed.  The Bill of Rights was designed to protect against the tyranny of the majority by defining certain rights of every individual that could not be infringed upon.  It is one reason why people around the world fight to come here for a chance to succeed.  Because they know that these principles will allow them to do so if they have the drive to succeed.

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Liberty's Life Line by William R. O'Connell is licensed under a Creative Commons Attribution-NonCommercial-NoDerivs 3.0 Unported License.