Monday, May 30, 2005

Chinese Textile, Housing Bubble and Farm Subsidies

China Ends Export Tarriffs from the The Economic Times (india):

China said on Monday it will abolish export tariffs on 81 categories of textile products and scrap scheduled tariff increases on 74 types of textiles as trade tensions with the European Union and United States escalated.

Housing Bubbles, the Great Plains and the Coast by Brad Setser:

My Midwestern chauvinist side always thought it was amusing that the
big, sort-of-national daily papers waxed far more eloquent about
eliminating farm subsidies than eliminating suburban housing subsidies.
Everyone has constituents.

In that post Brad Setser also mentioned: "US farm subsidies certainly do need to be reformed, particularly those that have a large impact on poor farmers in the world's poorest countries."

Big Farms Reap 2 Harvests With Aid as Bumper Crop by Timothy Egan:

Despite the fact that farm income has doubled in two years, federal farm subsidies have gone up nearly 40 percent over the same period -- projected at $15.7 billion this year, and $130 billion over the last nine years. And that bounty is drawing fire from people who say that at this moment of farm prosperity, the nation's subsidy system has never made less sense.
But because nearly 70 percent of the subsidies go to the top 10 percent of agricultural producers, the recent prosperity is not seen or felt among many small to medium-size growers who keep the struggling counties of the Great Plains alive.

Update: also see our investing and economcs blog

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