Saturday, March 29, 2008

Farm and Home

There is nothing better than an article that combines elements of farm policy and the recent housing problems into one argument.

Here are a couple elements of a very insightful column:

In case you hadn't noticed, this last year has been a banner one for farmers, thanks to bountiful harvests and record commodity prices. The average farm household income in 2006 was $77,654, or about 17 percent higher than the average for nonfarm households. And next year, that's expected to rise to $90,000.

But for Max and Chuck, that's no reason to cut back on farm socialism. No siree. Farmers are expected to pull in $13 billion in federal subsidies this year. And there will be plenty more once Congress gets around to passing a new five-year farm bill later this spring.



Contrary to what you might be hearing, the goal here shouldn't be to prevent housing prices from falling. In fact, the aim ought to be to get them to fall as quickly as possible to a level consistent with the incomes of the people who live in them, or could potentially buy them. For it is only at that point that sellers, buyers and lenders will regain the confidence necessary to start selling, buying and lending again.


I agree with Mr. Pearlstein when he says "Hypocicy that's hard to Bear."

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