BEGGAR THY NEIGHBOR

It is crazy to think that in a time of famine, Ethiopian farmers had warehouses full of surplus grain. Ethiopian farmers, who are unable to get rid of their surplus, fear not having enough money for the next round of harvest and storage. Also, prices in Ethiopia will drop, farmers will be unable to pay loans and expenses. These factors will contribute to a smaller crop planted for next season, and famine will continue. Many groups “charge that Washington uses food aid to dump surplus commodities, in effect subsidizing U.S. growers”.

Thus does a beginning economics student discover the sweet land of subsidy.