Flawed Economic Models

Many nations run flawed economic models.  Look at Greece, Spain, Portugal, Italy, and to a lesser degree Ireland.  All borrowed heavily leading up to the Great Recession.  Did any of these nations use massive borrowing to increase productivity and output?  No.

To this day Brazil and Mexico worship the peasant farmer.  Why?  Farming gives peasants an occupation.  Within the WTO however, both Brazil and Mexico use any manufactured excuse possible to claim the U.S. government gives subsidies to U.S. farmers, thus lowering the selling price of U.S. farm products on the global market.

Reality?  U.S. farmers produce at a lower price point than thousands of Mexican and Brazilian field hands tilling the soil with no mechanization.  How do I know this?  I farm just over 70,000 acres of farmland in America.  I employ one person per thousand acres.  In Mexico, that 70,000 acres would employ 2,310 people.

Southern Europe must become as productive as the U.S. farmer across the economic spectrum.  This is the only way these countries can survive without constant financial aid from Germany, which the Germans cannot sustain and should not be expected to sustain.  Else, we may yet see the Fourth Reich.

Advertisements
This entry was posted in Farming. Bookmark the permalink.

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s