Principles of Macroeconomics / Unit 2 MAC 0125 short lesson, about 20 seconds
Agricultural Price Supports
Captions available
The idea
Governments have long set floors under farm prices. Because the floor creates a surplus, the government has often bought the surplus itself, stored it, or paid farmers to plant less.
In practice
Farmers gain a higher and steadier price; taxpayers and food buyers pay for it.
Where people slip
Support paid in proportion to output goes mostly to the largest producers, whatever the stated purpose.
Your place on the trail
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