• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Econ Commentary 2

Extracts from this document...


Jeff Leeson I.B. Comparative Politics and Economics (SL) Steve Smith South PM3 March 1st, 2009 (due March 3rd, 2009) Commentary 3 Source: Stone, Matthew. Local Dairy Farms Try to Remain Viable. 15 Feb. 2009. 1 Mar. 2009 <http://news.tradingcharts.com/futures/6/2/120697326.html>. I.B. Syllabus 2.6 Word Count: 657 This article's main focus is about subsidies for Maine's dairy farms. Questions are raised when government starts thinking about cutting the state's subsidy program. It explains the importance for subsides and also things like who will be affected, how will they be affected and what would happen if their industry were to fall. The economic concepts reveled in this article include: * Subsidy: An amount of money paid by the government to a firm per unit of output. ...read more.


So, if subsidy program is cut, that means that these farmers will have to sell their products for higher prices. This will make them undesirable to buy, the farmer's will lose profit and may go out of business. The whole purpose of a subsidy is to guarantee the supply of a product that the government thinks is needed for the economy. I don't really understand why they're taking out money of such and essential subsidy program. * Infrastructure: The article also goes off on the horrible consequences of the dairy industry as a whole collapsing. If most of the 330 farms went out of business this would greatly affect other infrastructures like trucking and veterinary services. ...read more.


At no point does it say why the government is taking out money from the subsidy program or what they're planning to do with it. It also says that they rely on the federal subsidy system before using up funds in the state dairy-stabilization program (the one that's getting partially cut). We do not know any specifics on how much they use either program nor do we know how much they can do without it. It also isn't very clear on the consequences of a loss of local dairy farms to larger corporate farms, and it doesn't say much on other industries that rely on dairy products. In my opinion, I believe that we shouldn't cut funding for dairy farm subsidies because, if the industry fails, it could be disastrous for other industries not to mention Maine's economy. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our International Baccalaureate Economics section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related International Baccalaureate Economics essays

  1. Old IB Questions

    Firms can attract customers by use of these methods increase their monopoly power and their ability to control the price of their product. They can charge a higher without risking loss of buyers to rival firms. In general, the more differentiated the product is from its substitutes and the more

  2. Free essay

    Economic Article Commentary - The five biggest supermarkets in the UK are accused of ...

    It also shows what can go wrong. Reputations on the line as court rules on Commission's Summary The European Court of Justice will deliver its verdict on a decision by the European Commission in March 2004 to find Microsoft guilty of illegal business practices. The Commission ordered the software group to make concessions to competitors and fined it � 497 million.

  1. Growth and Development Problem Set - IB Economics exam questions and answers.

    It represents the total value of final goods and services produced within a country during a specified time period, such as one year GDP per capita is total GDP of a country divided by its population. Gross National Product (GNP): Value of all goods and services produced in a country

  2. Ensayo Nsmero 2

    ciento con una tasa de variaci�n anual de 2.58 por ciento que se puede comparar con un 2.73 por ciento el mes anterior. Los sub�ndices de precios de los productos agropecuarios y de los bienes y servicios administrados y concertados fueron 1.87 por ciento y 2.93 por ciento respectivamente.

  1. Mutual Funds vs ETFs

    Till that time no legal frame work was existed to look after this innovative business. The people were getting more money and the government was not involved. In other words profit was there earning was there but no concept of tax existed.

  2. Economics Commentary 2

    Yesterday's job report makes a rate cut even less likely, economists said, at least in the immediate future. "The Fed isn't doing anything in the short term," said Jan Hatzius, chief U.S. economist for Goldman Sachs, which shifted its forecast for a rate cut from June to September after seeing yesterday's numbers.

  1. 15 Historical Economic Questions on Mercatilism and the Development of European Countries.

    Ireland against competition from less expensive foreign imports between 1815 and 1846. These laws disagreed with Free-Trade ideals while in fact it strongly prohibited them. The Corn Laws were parallel with the theories of mercantilism and protectionism. David Ricardo was a strong proponent of free trade and used logic-based theories to highlight the negative impacts of these laws.

  2. Economics commentary- NEW DELHI: Concerned over the misuse of subsidies provided under various schemes, ...

    The need to set up the task force arose in view of "overwhelming evidence that this (current) policy is resulting in waste, leakage, adulteration and inefficiency. Therefore, it is imperative that the system of delivering the subsidised kerosene be reformed urgently," the government had said.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work