Agricultural Trade Barriers
By Arnold Kling
Paul J. Gessig makes the case for dismantling U.S. agricultural subsidies.
According to Organization for Economic Coordination and Development (OECD) data and calculations from Dan Griswold of the Cato Institute, completely eliminating the current web of subsidies and tariffs would provide the economic equivalent of an immediate $18 billion per-year tax cut for American consumers. As if to answer critics of most tax-cut plans, ending agriculture subsidies would also reduce the budget deficit by another $20 billion each year (the current annual federal subsidy level).
For Discussion. When it comes to trade wars, economists tend to favor unilateral disarmament–abolishing tariffs and subsidies regardless of what other countries do. Why instead is trade dealt with through bilateral or multilateral negotiations?