this post was submitted on 28 Oct 2023
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Capitalism favors a slight shortage against an inelastic demand, to maximize profits. Farming subsidies protect our food supply by ensuring significant excess supply during normal conditions, and sufficient food supply during droughts, disasters, and other calamities.
However, all that subsidized excess production tanks the market price of agricultural products during normal market conditions. Any state that relies on farming as a primary source of revenue is going to be poor and heavily reliant on subsidies.