I read recently that Biden is going to allocate one billion dollars to the beef industry to combat price increases. These pesky things are what taxpaying citizens call inflation that for the last many years, if you believe the Federal Reserve Bank and other government bureaucracies, has been held at bay. I am not an expert on the beef industry and I don’t play one on TV, but the industry, like many in this country are heavily controlled by a few very large corporations. The internet said this was true, so there.
What is also true is this industry is heavily regulated. Many people think this is a good idea and that regulation keeps things safe. Good for the taxpayer and good for the workforce. We don’t want tainted beef or cattle goring the workers as they attempt to carve them up. It is a win/win.
Heavy regulation is often desired, this is business 101. Regulation acts as an impediment to entry. Government could help with these impediments by reducing regulation, while still keeping all parties safe, but it doesn’t want to and current businesses in the industry don’t want it too either. It keeps out the riffraff and competition.
This is not a Republican or Democratic issue, it is a Congress issue. We can blame Biden for allocating a billion dollars to solve a problem that could be addressed through regulation elimination or for allowing inflation to go ballistic but it makes more sense to blame both parties for perpetuating this nonsense. As an aside, I blame Summers and Geithner for inflation but since Congress has continuously refused to fix their abomination, if I were them, I’d blame Congress.
It is not the only inane policy.
Subsidies, discussed on this blog in the past, have been the subject of books, are studied in business schools, and have been in the news numerous times, but get funded each year. Without subsidies, the world would end. I’m almost certain if I Googled it, and Google wanted the answer to be the world would end if subsidies stopped, the internet would verify this world ending result.
It is crazy.
Governments, and it is not only the Feds, are spending money to support various industries under the auspices of equity and helping the citizenry. It is a ruse. The beef industry does not need a subsidy. The milk, corn and other industries do not need subsidies. Foreign countries do not need money from us. If I want to donate money to Haiti, or the Clinton Foundation, it’s my business, but I want my tax dollars to stay here in the U.S.A. to fund actions of the federal government, not to augment the coffers of various business.
This madness has to stop.