Paul Krugman asks: What are farmers thinking?
He provides us with these facts:
On the eve of Trump’s trade war, America exported 76 percent of its cotton production, 55 percent of its sorghum, half its soybeans, and 46 percent of its wheat.
Overall, U.S. agricultural exports are almost 40 percent of the value of farm production, up from just 15 percent circa 1970. Globalization hurt some parts of U.S. manufacturing, with particularly harsh effects on some small industrial cities. But the rise of China and the growth of world trade have been nothing but good news for farmers.Under Trump this has changed, thanks to Trump's trade war. China has retaliated in the trade war launched by Trump by slapping tariffs on US agricultural products shipped to China:
[F]armers are hurting financially. Investors are worried about a possible recession for the economy as a whole, but the farm recession is already here, with falling incomes, rising delinquency rates and surging bankruptcies. And the farm economy’s troubles stem directly from Trump’s policies.According to the American Fram Bureau Federation, "Across the U.S., farm loan delinquencies and Chapter 12 bankruptcies are rising...In the year ending June 2019, Chapter 12 farm bankruptcies increased in every region in the United States, except for the Southeast. However, there were still a significant number of bankruptcies filed in that region.
"The Midwest and Southeast had the highest number of filings, 240 and 100 bankruptcies in the past year, respectively. The Midwest is up from 215 filings from the previous year to 240 filings, an increase of 12%. The biggest increase in bankruptcies, 50%, occurred in the Northwest, which includes Washington, Oregon, Idaho, Montana and Wyoming."
Still, Krugman notes, according to one recent poll, 71 percent of farmers approve of Trump’s performance.
And he provides the evidence that Trump and his administration see them as nothing but useful idiots:
Recently Sonny Perdue, the agriculture secretary, let the mask slip during a meeting with farmers complaining about their plight. “What do you call two farmers in a basement?” he snarked. “A whine cellar.”
Trump’s own remarks about trade with Japan were even more telling. According to a White House transcript, Trump complained that while Japan sends us millions of cars, “We send them wheat. Wheat. (Laughter.)” Do farmers realize that their president considers their livelihood a joke?-RW
“71 percent of farmers approve of Trump’s performance”.
ReplyDeleteIt’s unbelievable. Cheering their own doom.
Sounds a bit like Star Wars, Episode III:
Delete"So this is how liberty dies...to thunderous applause."
How many of these farms were already on the way to financial ruin before the tariffs? Krugman is a life long useful paid idiot.
ReplyDeleteThe bigger issue is that China has refused to conform to Western norms especially on the intellectual property. There is also the fentanol issue. I know for libertardians though everything is about 'cheap labor' and little else.
So conform to what LM says is his norm or else no trade? Some of these farms may have already been on the way out, but when you can’t sell your goods you are definitely getting finished off. By your own government. Is that a western norm? For your government to put you out of business?
DeleteAnd it’s not all about cheap labor, but also buying goods that you want cheaper.
And most important, above all, being able to do business with whatever you want with whoever you want whenever you want. That’s called Liberty. Humans don’t need other humans dictating what they can and can not do, especially in these matters.
Also, blaming China for Americans having a drug problem is like blaming gun manufacturers for gun deaths. US prescription drug problems are largely to blame on the Medicaid system. Why would the US government be complaining about that anyway, is it competing with their heroin imports from Afghanistan?
ReplyDeleteAll this does is confirm the magnitude and scope of the real Idiocracy in this nation!
ReplyDelete