RE: Public support for farm subsidies

2002-07-31 Thread Alex Robson

David Levenstam wrote:

Far more people support the general idea of freedom
of speech than support many specific unpopular examples.

The analysis of bundling issues and logrolling has a long history in the
field of public choice, but an interesting recent paper on this topic is:

Saari, D. and K. Sieberg (2001) The Sum of the Parts can Violate the Whole
American Political Science Review, 95(2): 415-433.

Alex


Dr Alex Robson
School of Economics
Faculty of Economics and Commerce
Australian National University
Canberra ACT 0200.
AUSTRALIA
Ph +61-2-6125-4909

 -Original Message-
From:   [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED]]  On Behalf Of
[EMAIL PROTECTED]
Sent:   Wednesday, 31 July 2002 2:15 PM
To: [EMAIL PROTECTED]
Subject:Re: Public support for farm subsidies

Hi, I'm new to the list, having just moved here after 11 years in the Field
of Farm Subsidies (Iowa), so I hope it's alright for me to reply.

Living in Iowa I observed tremendous support for agricultural subsidies,
including both price supports (which legislation under the Contract With
American began to phase out) and ethanol subsidies (a form of ADC, or Aid to
Dependent Corporations, in particular to Archer Daniel Midlands, which bills
itself as Supermarket to the World but which might just as well call
itself
Airline to Bob Dole).  Even many self-proclaimed conservatives supported
ag
subsidies during the Iowa Caucus seasons, and I saw some of them unabashedly
demand from Phil and Wendy Gramm continued ag subsidies even as these
conservatives applauded the Gramms' opposition to government subsidies.

Having grown up in Chicago and lived in Denver I saw virtually no support
whatsoever from urban residents, even statist-liberals, for ag subsidies.
Of
course I am speaking anecdotally, and not statistically, but I try to recall
that the wording of a poll can substantially alter its results.  Imagine, to
take what seems like a clear example, the difference we might see between a
poll that asked do you support cutting welfare? and one that asked do you
support cutting welfare if it would cut payments to starving single
mothers?
or even one that asked simply do you support cutting welfare if it would
cut
payments to single mothers?  Many people who would in general support
cutting welfare might think twice when confronted directly with the
possibility that a cut in welfare could reduce welfare payments to single
mothers.

To take an example that Milton Friedman has I believe used over the years,
imagine the difference between asking whether people support freedom of
speech and whether they support the freedom to say nasty things about Bill
Clinton (or George Bush, or the Pope, or whomever; Iowa has a large
percentage of Catholics in the population, many of whom take a dim view of
criticizing the Pope).  Far more people support the general idea of freedom
of speech than support many specific unpopular examples.

In our ag subsidy poll, imagine the different between asking Canadians (or
indeed Americans) whether they (we) support increasing ag subsidies and
asking whether they support increasing ag subsidies if other countries'
governments already provide higher subsidies.  Contrasting Canada's low
subsidies with the subsidies of other governments plays, as Eric suggests,
on
Canadians' xenophobia; in the case of Americans, we have seen Pat Buchanan
(and Ralph Nader, though he would deny it) playing likewise on American
xenopobia.  I've personally seen herds of conservatives who would otherwise
at least claim to oppose Big Government stampeding after Buchanan (Pat
again,
not James) as he tried to lead them over the Big Government cliff of
protectionism. Yet I cannot imagine that in any national poll that asked
simply, do you support higher ag subsidies that Americans, even typically
subsidy-sympathetical statist-liberals, would in any large percentage say
yes.

Does anyone see any evidence that outside of areas in which farming plays a
large role Americans support higher (or indeed continued) ag subsidies?

Sincerely,

David B. Levenstam


In a message dated 7/30/02 3:07:14 PM, [EMAIL PROTECTED] writes:

 This question has been bounced around on the armchair list for a
while...here's a bit of evidence on the question.  It's from Canada, but I
doubt that American results would be that much different.  The vast
majority of Canadians support farm subsidies for the indefinite
future.

The question keys into a bit of standing Canadian anti-Americanism, but
change the question wording to reflect American farmers receiving lower
subsidies than the French, and I think results of an American poll would
be quite similar.

The poll, taken August 2001, can be found at:

http://www.canadianalliance.ca/hotissues/viewby/index.cfm?DoID=756readartic
le

=1dirlevel=2category=4department=37

Eric
--

If you found out that Canadian farmers receive less subsidies than
American or European farmers, which of these two statements would come
closer

Re: Public support for farm subsidies

2002-07-31 Thread LFC.NET Registrar

It may be interesting to look at the history and current perceptions of farm
subsidies in New Zealand too.

Revolution in a Small Country
by R. W. Bradford
http://www.libertysoft.com/liberty/features/58bradford1.html

Not surprisingly, with a guaranteed profit on every sheep they produced and
subsidies to increase production, farmers added to their herds. New
Zealand's sheep population increased from 55 million in 1975 to 70 million
in the early 1980s, despite the declining demand. The government purchased
the surplus sheep, killed them and froze them, and ultimately processed the
carcasses into fertilizer, which it sold back to the farmers at subsidized
rates. The economics of the whole process were appalling: in one instance,
sheep that cost the taxpayer $330 million in subsidies were converted into
fertilizer and sold for $6.5 million.

...

Farmers, traditionally the backbone of National Party support, were the
first special-interest group to find itself in Douglas's crosshairs.
Supplementary minimum prices were abolished and loans brought up to market
rate. (To help farmers who had borrowed against subsidy-inflated land
values, capital amounts of loans were reduced, so very few farmers were
forced off their land.) Farmers marched on Wellington, but the Labour
government was firm. Within a few years, farmers had adjusted to the new
rules, become entrepreneurial, and were strong supporters of the Revolution.

This pattern repeated itself in other sectors of the economy. Before you
remove the privileges of a protected sector, Douglas wrote in 1989, it
will tend to see change as a threat which has to be opposed at all costs.
After you remove its privileges and make plain that the clock cannot be
turned back, the group starts to focus on removing the privileges of other
groups that still hold up its own costs.

...

The farmers, hit hard in the Revolution's early days, quickly learned about
free markets and seemed much better businessmen than the subsidized and
regulated American farmers I've met. They routinely discussed the world
market prices for various farm products, and about shifting production based
on market conditions. Right now, many are getting out of sheep and
especially beef, where prices are low, and moving into deer, because venison
prices are high. I spoke to only one farmer who wasn't making a profit. He
was a wealthy American who two decades ago had bought land that he farms
more as a hobby than as a business.






Re: Public support for farm subsidies

2002-07-31 Thread Eric Crampton

On Wed, 31 Jul 2002 [EMAIL PROTECTED] wrote:

 but I try to recall 
 that the wording of a poll can substantially alter its results.  Imagine, to 

The question wording could have been a bit better, but nothing was
misrepresented or too slanted.  The question was framed around the actual
farm subsidy debate in Canada, which largely centers around responses to
foreign subsidies (which are a fair bit higher than the Canadian ones).

 Does anyone see any evidence that outside of areas in which farming plays a 
 large role Americans support higher (or indeed continued) ag subsidies?
 
I'd love to see results from a decent survey on this.  I'd be willing to
bet in a Hanson market on the results.  I'd put even odds on overall
support for farm subsidies being at 65% in a fair, unbiased question.  I'd
give 2:1 that support is 50%.

Eric






Re: Public support for farm subsidies

2002-07-31 Thread john hull

Howdy,

Does anybody think that the amount or pattern of
support for farm subsidies would change if the average
American were better informed?  (I know, I know,
better informed is awfully value laden and implies a
Philistine-ish public, I'm just not sure how to phrase
it.)  By better info I mean deeper understanding of
int'l trade economics along with more complete
knowledge of amounts spent and the patterns of
spending and per capita costs, etc.  (And anything
else you feel is important.)

[EMAIL PROTECTED] wrote:
Even many self-proclaimed conservatives supported ag
subsidies during the Iowa Caucus seasons...

Michael Moore, in an episode of his show TV Nation
went to Newt Gingrich's home district during a 4th of
July parade.  He first joined the parade carrying a
sign denouncing big government and got cheers.  He
changed his sign so that it denounced federally funded
local projects and was kicked out of the parade.  
While I'm not a big M. Moore fan, that stunt was a bit
revealing

Best regards,
jsh

=
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other has done him no wrong.
-Machiavelli, Discourses on Livy, Discourse 16.

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Re: Public support for farm subsidies

2002-07-31 Thread Bryan Caplan

Bryan Caplan wrote:
 You can check your public opinion guesses about various kinds
 of spending at:
 
 http://www.icpsr.umich.edu/GSS/
 
 Click S for spending.

But first click Subject on the left-hand menu!  Sorry.

-- 
Prof. Bryan Caplan
   Department of Economics  George Mason University
http://www.bcaplan.com  [EMAIL PROTECTED]

  He wrote a letter, but did not post it because he felt that no one 
   would have understood what he wanted to say, and besides it was not 
   necessary that anyone but himself should understand it. 
   Leo Tolstoy, *The Cossacks*




Re: Public support for farm subsidies

2002-07-31 Thread AdmrlLocke


In a message dated 7/31/02 9:23:51 AM, [EMAIL PROTECTED] writes:

 On Wed, 31 Jul 2002 [EMAIL PROTECTED] wrote:

 but I try to recall 
 that the wording of a poll can substantially alter its results.  Imagine, 
to 

The question wording could have been a bit better, but nothing was
misrepresented or too slanted.  The question was framed around the actual
farm subsidy debate in Canada, which largely centers around responses to
foreign subsidies (which are a fair bit higher than the Canadian ones).

But that's the whole point: supporters of ag subsidies have managed to turn a 
question about support for a government spending program into a question 
about us versus them.  

 Does anyone see any evidence that outside of areas in which farming plays a 
 large role Americans support higher (or indeed continued) ag subsidies?
 
I'd love to see results from a decent survey on this.  I'd be willing to
bet in a Hanson market on the results.  I'd put even odds on overall
support for farm subsidies being at 65% in a fair, unbiased question.  I'd
give 2:1 that support is 50%.

Eric 

Sadly at the moment we seem only able to speculate, but perhaps someone 
intrepid will find us some polls that ask the simple question of whether 
Americans support more, continued or less spending on ag subsidies.

Sincerely,

David




Re: Public support for farm subsidies

2002-07-31 Thread AdmrlLocke


In a message dated 7/31/02 10:44:36 AM, [EMAIL PROTECTED] writes:

 Standard questions ask higher spending, lower spending, or about
the same.  I bet you would get at least 40% saying about the same and
probably 25% saying higher, making the status quo the median voter
outcome.  You can check your public opinion guesses about various kinds
of spending at:

http://www.icpsr.umich.edu/GSS/ 

I searched the site but didn't find anything on farm subsidies.

David Levenstam




Re: Public support for farm subsidies

2002-07-31 Thread AdmrlLocke


In a message dated 7/31/02 12:09:35 PM, [EMAIL PROTECTED] writes:

 Howdy,

Does anybody think that the amount or pattern of
support for farm subsidies would change if the average
American were better informed?  (I know, I know,
better informed is awfully value laden and implies a
Philistine-ish public, I'm just not sure how to phrase
it.)  By better info I mean deeper understanding of
int'l trade economics along with more complete
knowledge of amounts spent and the patterns of
spending and per capita costs, etc.  (And anything
else you feel is important.) 

While it might be value-laden (by which I take it you mean laden with value 
judgements) it might also simple be descriptive.  Isn't it Public Choice 
economists who coined the term rational ignorance to describe the situation 
in which it would cost the average taxpayer more to get better informed than 
he could thereby save himself in taxes he could thereby prevent (or prevent 
from being raised, or get lowered)?

Sincerely,

David Levenstam




Public support for farm subsidies

2002-07-30 Thread Eric Crampton

This question has been bounced around on the armchair list for a
while...here's a bit of evidence on the question.  It's from Canada, but I
doubt that American results would be that much different.  The vast
majority of Canadians support farm subsidies for the indefinite
future.  

The question keys into a bit of standing Canadian anti-Americanism, but
change the question wording to reflect American farmers receiving lower
subsidies than the French, and I think results of an American poll would
be quite similar.  

The poll, taken August 2001, can be found at:

http://www.canadianalliance.ca/hotissues/viewby/index.cfm?DoID=756readarticle=1dirlevel=2category=4department=37

Eric
--

If you found out that Canadian farmers receive less subsidies than
American or European farmers, which of these two statements would come
closer to your view:

a) Canadian farmers should not receive subsidies to help them compete with
the subsidies that farmers in other nations receive, even if this means
that some farmers go bankrupt ... 13%

b) Canadian farmers should receive subsidies to help them compete until
farm subsidies in other nations are lowered, even if this means
subsidizing farming for many years  78%

c) no opinion  ... 10%