Acton Institute Powerblog

Feeding the Poor, Bureaucracy Style

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From India comes this tragic headline:

As India’s kids starve, $1.5 billion worth of grain rots

How does a country have starving people while it is producing so much food that it is literally rotting from being left outside in the open? The depressing answer is that it’s the result of government intervention in the agricultural market. The article from MSNBC goes on to detail how government policies produce too much grain relative to other agricultural products such as fresh fruits or vegetables. Worst of all, the price supports that the country puts in place are a major contributor as well.  The natural outcome of a market subverted by the government to serve some groups interest, in this case the farmers, is too often a catastrophe. Sadly, India’s poor are often the target of someone’s “good” intentions, as Joe Carter pointed out a couple months ago.

When people consider our mandate to help the poor, let’s keep in mind what happens when we let the government subvert markets. It’s hard to think of a more morally outrageous proposition than having tons of grain rot while people are starving in the same country.

John MacDhubhain Recent alumnus of Michigan State, future student of George Mason

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