Home
/
RELIGION & LIBERTY ONLINE
/
Crushing the poor: agricultural tariffs and subsidies
Crushing the poor: agricultural tariffs and subsidies
Jan 28, 2026 9:36 PM

There are a lot of campaigns and organizations dedicated to alleviating extreme poverty found in the developing world. These same groups advocate for the provision of what the material poor often lack: clean water, decent housing, financial capital, nutrition, etc.

But this deficit of material goods, what we typically call “poverty,” is symptomatic of larger problems. People are not poor because they lack “stuff.” People are poor mainly because they do not have access to secure property rights, the rule of law, and the ability to start a formal business. If placed in an institutional framework with these advantages, many people in extreme poverty today would not be poor in the first place.

Another major, underlying reason for extreme poverty is the fact that the material poor are often disconnected from global markets. When people are able to exercise parative advantage and exchange many of their goods and services in the global economy, they flourish. When they cannot do so, they suffer privation.

What’s so scandalous is that the material poor are intentionally excluded from global markets by well-connected and influential interests. Agricultural tariffs and subsidies are a case in point. Large panies and their political enablers use tariffs to stifle their petition by artificially increasing the cost of goods produced by the rural poor and making their import financially untenable.

These panies exacerbate the challenges the poor face by securing agricultural subsidies from their governments. While this naked display of cronyism happens in many countries, it is a perennial event in the United States, which produces what’s known as thefarm bill every five years or so. The subsidies provided in the farm bill are harmful for U.S. consumers and taxpayers in a number of ways, but they are absolutely devastating for the world’s poor.

The Acton Institute’s PovertyCureinitiative has a video that further explains these issues ments on why people’s exclusion from global markets is so harmful:

The pernicious effects of these agricultural tariffs and subsidies are felt far and wide in the developing world because so many people in material poverty are engaged in the agricultural sector. As recently as 2016, the World Bank estimated there were 500 million households engaged in small-scale farming globally, which equates to approximately two billion people. It’s these very same people that “make up a significant portion of the world’s poor who live on less than $2 a day.”

The degree of injustice and scandal surrounding agricultural tariffs and subsidies reaches a high note once one understands who actually benefits from them. While agricultural subsidies are pitched as a way to protecting small, family-owned farms, the reality is quite the opposite. According to Vincent H. Smith, director of the Agricultural Studies Program at the American Enterprise Institute, the largest and wealthiest 15 percent of farms within the United States capture 85 percent of all of its agricultural subsidies.

If we increasingly focus on the underlying reasons why people are poor, instead of merely supplying what they lack, then we can truly make progress by removing the barriers inhibiting their prosperity. Quickly phasing out and eliminating all agricultural tariffs and subsidies included in the United States’ farm bills would be a great start.

By allowing people around the developing world to simply employ their talents and trade the fruits of their labor within global markets, we will do more than rightfully acknowledge their God-given abilities, creativity, and intrinsic value. We might even realize the elimination of extreme poverty in our lifetime.

Comments
Welcome to mreligion comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
RELIGION & LIBERTY ONLINE
A Micro-Lending Prelate
Zenit reports a new initiative by Cardinal Crescenzio Sepe of Naples, Italy: “he is donating a year’s stipend and part of his personal savings to initiate a diocesan bank that will offer micro-credits to the poor.” I like two things about this project. First, the cardinal is putting his own money to work, furnishing a good example of mitment to assist those in need. Second, he is doing so in a thoughtful and creative way, not “throwing money” at a...
The more things change …
A 1934 cartoon by Pulitzer Prize winner Carey Orr published in the Chicago Tribune. Snopes is still checking. ...
PBR: A Cautionary Tale
AS NYT columnist Frank Rich observed earlier this week, it’s hard to find much sympathy for Rick Wagoner. “Sure, Rick Wagoner deserved his fate,” writes Rich. “He did too little too late to save an iconic American institution from devolving into a government charity case.” The delusions of the CEOs who lined up on Capitol Hill last year to lobby for bailouts extended beyond the arrogance of flying to congressional meetings in private jets. Duly chastened, the CEOs next made...
David W. Miller interviewed on PBS
Dr. David W. Miller, who was interviewed in Religion & Liberty for the Winter 2008 issue, was recently on a PBS program discussing corporate morality. Here is a portion of the PBS interview which relates to the theme in Acton’s R&L interview titled “Theology at Work: Faithful Living in the Marketplace:” (anchor) ABERNETHY: You, as I said, you used to work in the financial business. What do your friends there, the friends that you have who’ve worked there — what...
Market and Government Failure
An essay of mine appears today over at the First Things website as part of their “On the Square: Observations & Contentions” feature. In “Between Market and State,” I explore the dialectic logic of market and government “failure,” which functions in part to provide us with a false dilemma: our solution to social problems must lie with either “market” or “state.” I work out this logic in the context of the sub-prime mortgage crisis, and conclude that non-profits play a...
Easter: The Resurrection & the Life
Jesus said to her, “I am the resurrection and the life. He who believes in me will live, even though he dies; and whoever lives and believes in me will never die. Do you believe this?” – John 11: 25, 26 The es from the account of Lazarus being raised to life by Christ after already being dead for four days. The question “Do you believe this?” was posed to the sister of Lazarus, Martha. There have been people who...
The Tax Code: Business as Usual
In this week’s Acton Commentary, I argue for simplifying the tax code. It should also be evident that any sort of tax reform should coincide with reforming the way Washington currently operates when es to spending. April 15th is of course tax day, and national protests will also be occurring across this nation under the historically significant title of “tea parties.” One of the points I made in my piece is that it is important that these protests are not...
A Quick Response to the Christianity Trailing Off Thesis
I recently received a request from a reporter to respond to the recent spate of studies and stories positing a decline in American Christianity. Here’s how I answered: Broadly speaking, it is silly to think of secularization as a linear process. The prominence of the Christian faith waxes and wanes during different historical periods. As Rodney Stark has pointed out, the old golden age of faith picture of antiquity is not nearly as strong as many believe. There is, however,...
PBR: Ministries that Matter
Starting this year, the Acton Institute is planning to give out the Samaritan Award every other year. This will allows us to better streamline the award process as well as to more smoothly integrate the results of the award into our Samaritan Guide database. In recent years the Samaritan Award finalists have been profiled in a special issue of WORLD Magazine (here’s the link to the 2008 issue). But this year the folks at WORLD are taking the opportunity to...
Warren on the Faith-Based Initiative
In a wide-ranging interview with Christianity Today, Rick Warren discussed his view of the new vision for the faith-based initiative. Here’s that Q&A: Have you paid attention to the new faith-based initiatives released by President Obama and Joshua DuBois focusing on the four issues of responsible fatherhood, reducing unintended pregnancies, increasing interfaith dialogue, and reducing poverty? Those are great goals. My fear is that if all of a sudden you have promise your convictions to be part of the faith...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved