Acton Institute Powerblog

Just Say No to (Corporate) Welfare

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Just say “No!” to corporate welfare. That’s a pretty good motto, I think.

And it seems that one form of corporate welfare, the vast system of farm subsidies, is getting some increased critical mainstream coverage. In today’s WaPo appears a story with this headline: “Federal Subsidies Turn Farms Into Big Business.”

I’ve seen quite a few stories in this vein over the past few months, exploding the mythical image of the down home family farmer. Here are some unintended consequences of the subsidies: “The very policies touted by Congress as a way to save small family farms are instead helping to accelerate their demise, economists, analysts and farmers say. That’s because owners of large farms receive the largest share of government subsidies.”

And here’s what farmer John Phipps has to say about the subsidies: “It’s embarrassing,” Phipps said. “My government is basically saying I am incompetent and need help.”

Phipps got $120,000 in subsidies despite the fact that he “harvested nearly 170,000 bushels of corn and soybeans last year on two square miles of fertile soil. He grossed nearly $500,000, putting his farm in the nation’s top 3 percent.”

These subsidies are big money, as “last year the government paid out about $15 billion in income support or price guarantees.”

Why does somebody like Phipps take the money even though it’s not a necessity? Because not taking it would put him at a great competitive disadvantage: “I’m not proud of it,” he said. “I would like to have the moral courage and financial clout not to take them. But if I don’t, I won’t be able to compete when it comes time to bid for land.”

Our own Kevin Schmiesing has some good things to say about agriculture and subsidies. Kevin says that in policy debates, “Our focus should be not so much on the preservation of the farm as on the preservation of the dignity and self-respect of the farmer. That federal subsidies will further that goal is a questionable proposition indeed.”

And for other cases of egregious corporate welfare, look no further than the construction of sports stadiums.

Jordan J. Ballor Jordan J. Ballor (Dr. theol., University of Zurich; Ph.D., Calvin Theological Seminary) is a senior research fellow and director of publishing at the Acton Institute for the Study of Religion & Liberty, where he also serves as executive editor the Journal of Markets & Morality. He is author of Get Your Hands Dirty: Essays on Christian Social Thought (and Action) (Wipf & Stock, 2013), Covenant, Causality, and Law: A Study in the Theology of Wolfgang Musculus (Vandenhoeck & Ruprecht, 2012) and Ecumenical Babel: Confusing Economic Ideology and the Church's Social Witness (Christian's Library Press, 2010), as well as editor of numerous works, including Abraham Kuyper Collected Works in Public Theology. Jordan is also associate director of the Junius Institute for Digital Reformation Research at Calvin Theological Seminary. He has authored articles in academic publications such as The Journal of Religion, Scottish Journal of Theology, Reformation & Renaissance Review, and Journal of Scholarly Publishing, and has written popular pieces for newspapers including the Detroit News, Orange County Register, and The Atlanta Journal-Constitution. In 2006, Jordan was profiled in the book, The Relevant Nation: 50 Activists, Artists And Innovators Who Are Changing The World Through Faith. Jordan's scholarly interests include Reformation studies, church-state relations, theological anthropology, social ethics, theology and economics, and research methodology. Jordan is a member of the Christian Reformed Church in North America (CRCNA), and he resides in Jenison, Michigan with his wife and three children.

Comments

  • Before we cast stones…there is no LDP (subsidy) for Corn this year (or the forseeable future). Amazingly, the budget will still be spent somewhere under the guise of protecting family farms etc, but no corn farmers will be getting any checks.

    JBP