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Here are some of our latest articles you may have missed:
Interesting New Paper On How The Fed Produces Disinflation
Analysis: Excellent New Paper Makes National Security Case for Free Trade
Farms Of All Sizes Feed The World
This is the title of a new article by David Bell at the Brownstone Institute, whose coverage of public health issues and agricultural issues has been consistently stellar.
The title may seem like a tautology, yet if you follow debates around agriculture, you will know that it will also be controversial.
Bell’s piece addresses the ongoing, and often venomous, debate between advocates of small-scale organic farming and proponents of large-scale industrial agriculture. (Both of whom can be found on the right, especially given the New Right’s embrace of organic farming and food quality.)
Bell argues that this debate is a false dichotomy.
He lays blame at the feet of two extremes: on one side, he identifies wealthy oligarchs who are accumulating vast tracts of land while simultaneously promoting artificial food alternatives; on the other, he points to affluent urban elites who advocate for organic and local food production as our only sources of food. Bell rightly notes that neither extreme offers a comprehensive solution to the monumental task of feeding over 8 billion people worldwide.
Bell’s analysis of the strengths and drawbacks of small-scale farming and industrial agriculture is pragmatic and very well thought-out.
Small-scale farming can promote biodiversity, reduce transportation costs, and can produce higher-quality, fresher food. It also allows for more personalized care of crops and livestock, potentially leading to better animal welfare and more sustainable soil management practices. However, small farms are vulnerable to localized weather events, diseases, and market fluctuations. They often struggle with economies of scale, making it difficult to compete on price with larger operations.
Industrial agriculture, on the other hand, benefits from economies of scale, allowing for more efficient use of machinery and resources. It can produce large quantities of food at lower costs, helping to feed growing urban populations. Industrial farms also have more resources to weather financial setbacks and invest in new technologies. However, they often rely heavily on chemical inputs, which can lead to soil degradation and environmental pollution. Monoculture practices in industrial farming can reduce biodiversity and increase vulnerability to pests and diseases. Additionally, the consolidation of farming into fewer, larger operations can lead to the loss of rural livelihoods and traditional farming knowledge.
The strength of Bell’s argument lies in his advocacy for a balanced approach to agriculture. He convincingly argues that food security requires a diverse and competitive food industry that incorporates both small and large-scale farming methods.
He advocates for maintaining a diverse, competitive food industry that supports farmer rights and open markets while avoiding centralized control by wealthy interests. Bell suggests expanding high-yield agriculture in developing regions to address food insecurity, embracing technological advancements, and preserving the gains of the Green Revolution. He emphasizes the need to encourage local sourcing where possible, but not at the expense of global food security.
Bell believes, credibly, that his middle ground approach would ensure food availability for urban populations, provide opportunities for rural communities, and maintain the flexibility needed to adapt to environmental and demographic changes.
We have believed some version of this view of this contentious issue for many years, but never found someone able to articulate it so well. Therefore, we highly recommend his article.
Policy Links
#TheEconomy – The jobless claims numbers just dropped, and they were being carefully monitored given the recent market upheavals. They came in better than expected, which the legendary investor Mohamed El-Erian called “a relief.”
#Trade – At The Dispatch, Cato’s Scott Lincicome, perhaps the most effective right-of-center advocate for open trade, takes issue with JD Vance’s instantly-infamous-among-wonks assertion that Republican voters “believe that a million cheap knockoff toasters aren’t worth the price of a single American manufacturing job.” What we like about this piece is that it doesn’t simply rehash the Econ 101 arguments for free trade, but brings something new and empirical to the table: a new Cato Institute survey that finds Americans support free trade. Interesting.
#SafetyNet – Interesting new NBER paper looking at whether wage insurance, which provides partial income replacement to displaced workers who are reemployed at a new wage that is lower than their prior wage, helps employment. The authors, Benjamin G. Hyman, Brian K. Kovak, and Adam Leive study the impacts of wage insurance in the context of the US Trade Adjustment Assistance (TAA) Program, which compensates workers who become unemployed as a result of international trade. Here’s the bottomline: “during the two years following displacement, wage insurance eligibility increases the likelihood that a worker will be employed by between 8 and 17%. They do not find any effect on employment four years after an unemployment spell begins.”
#Life – When Canada legalized euthanasia, proponents swore that it would be “rare” and only a “last resort.” We now know that the opposite is true. This thread from EPPC Visiting Fellow Alexander Raikin shows, terrifyingly, just how much. One doesn’t have to be religious or conservative to be astonished by how easily certain countries like Canada and the Netherlands kill their own citizens.
#AI #BigTech #Chyna – Very interesting development in the world of AI: Palantir, which needs no introduction, has partnered with Microsoft to include OpenAI’s GPT-4 model as part of its offerings. GPT-4 will be integrated with Palantir’s software and run on Microsoft’s Azure cloud services. In short, AI is coming to defense, government, and intelligence software. (Via)
#UpwardRedistribution – New IRS data: in 2023, $8.4 billion in residential green energy credits were claimed, and two thirds of that went to those earning $100,000 or more. Green virtue is nice if you can get it.
#K12 – RAND has done an interesting survey of American school districts to see how they are adapting to the expiration of Covid relief aid. The bottomline: “Reducing teachers was the most common budget cut that districts anticipated. Districts do not plan to cut back on devices: Virtually all surveyed districts (97 percent) planned to continue providing computing devices for students into the 2024–2025 school year.” Some would argue that doing the exact opposite would be a better approach…
#TaxPolicy – The Tax Foundation has a nice overview of IRS data on Americans’ sources of income. About 61% consists of wages and salaries, and nearly 80% of all tax filers reported earning wage income, but a huge bucket is retirement accounts, such as 401(k) and pensions. Overall, an interesting way to look at the state of the American economy.
#Immigration – No comment possible: “Illegal Migrant Deported For Rape Reentered US, Got Convicted Of Another Sex Crime” This is not a local crime story, it’s a policy choice.
#Sin – Cato with the case against high cigarette taxes. We certainly could not fail to highlight such a view.
Chart of the Day
Meme of the Day
