Ali’s blog

Mostly quant stuff with occasional digressions

Rigged markets

Posted by alifinmath on March 7, 2008

It’s always a source of amusement to witness how behind the rhetoric of “free markets” the US government rigs the markets for its pals and for those lobbies that can bring effective political pressure to bear. Here is a link on what’s been happening to food prices and why:

The Bureau of Labor Statistics recently confirmed what shoppers have been noticing for months: the price of food is increasing at an unusually rapid rate. And failed government policies—supporting domestic farmers through restrictions on cheaper imports and stimulating demand for corn-fed ethanol—are adding to consumers’ woes. The federal government can and should take this opportunity to alleviate the effect of higher prices at the grocery store by reducing taxes on imported rice, dairy products, and sugar and by abandoning its misguided support for biofuels.

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