[quote name='Soodmeg']Repubs to my guess wouldn't like the idea of government spending money to that us po' folk can continue to stuff our faces with tasty treats.[/quote]
That sounds sensible, but keep in mind that Republicans LOOOOOOOOOOVE spending if it's supply side. When you see people buy shit with their welfare cards that makes you wanna
ing kill (e.g., sodas, gummy bears, burger king, etc.), it's so win-win for Republicans. They increased access for businesses to accept EBT (but few people know that). For them, businesses should have equal access to EBT funds, and consumers should have open choices. It helps put more money in the hands of mega corporations when someone spends their welfare money at McDonalds (yay for Republicans) and it increases outrage at the use of welfare (yay for Republicans). It's devilishly brilliant politics, actually.
Anyway, they love corn subsidies because it allows companies to buy corn *below* the actual cost of production. Farmers get the subsidies, then they can sell it to, say, Kraft for inclusion in their thousands of food products as HFCS for less than it cost them to grow. The savings are passed onto the consumer (one major reason - the other being shelf life - why shitty processed food is cheaper by far than fresh, healthy food). So Republicans love the subsidies, because it allows the economy to chug along at a smooth and even pace (and help their re-election efforts because when Papa John sells 2-liters for $2.50 that cost him less than 50¢ to purchase because the subsidies absorbed the cost of producing said 2-liter, that's a lot of profit he can pass on to them in the form of PAC donations and campaign funds).
And it's a political trap because the moment any politician suggests ending subsidies, they're "putting farmers out of business" or "hurting American families" or somesuch. Which is silly, since the corn would still be sold, but that 99¢ 2-liter is gonna be priced accordingly (i.e., what it costs to produce.)
I doubt anything will change any time soon.
Subsidies won't go down, that's for sure. I'd be surprised if they didn't go up, though (so 2-liters are still bought).
[quote name='Spokker']End the subsidies and let the price rise even higher. You'll see consumers substitute away from processed food after that first grocery bill.[/QUOTE]
But it won't turn us into a healthy people just yet. There's a demonstrated link b/w the cost of cigarettes and declining numbers of Americans who smoke. But it's a weak link overall. This would be much the same, I suspect - we wouldn't see people buy fewer sodas until 24 packs begin to cost $8 and up. People still won't shop along the perimeter of the grocery store (where the bulk of the good food tends to be).
[quote name='kill3r7']Doubtful, because most of the major soft drink manufacturers sign long term contracts assuring they get their corn or corn syrup at a set price. However, I'm sure they'll pass the "rising cost" on to consumers.[/QUOTE]
Ahhh, yes, futures. Good point. They'll rise the price before they begin actually paying said higher price, though. A very cynical point, but well made.