This week the Federal Government doled out a grant of $8.3 million. This money is from the Rural Cooperative Development Grant program. The states of Nebraska and both Dakotas will receive about $225,000 each to improve the economic conditions of their rural areas. This grant is an example of the tools of the federal government and how it gives out grants-in-aid. It is vital to the rural areas of the United States as the farming produces food that is essential to feeding the country. Just like the example of the three-legged stool, if one section fails all will fail. If the farmers are struggling other sections will as well, especially if the farmers try to find a new source of living.
Will Kalish
http://www.kdlt.com/index.php?option=com_content&task=view&id=5538&Itemid=57
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This is an example of a redistributive policy where government grant money is collected from the wealthy to lessen the economic burden of another class. While certain redistributive policies are needed to help the poor, is it the right of the government to make policies against a free market capitalistic economy? Although much of the food is grown in the Midwest, a great deal also comes from cheap agricultural imports. Regardless of the government giving these rural farmers grants, cheap imports will prevent them from competing in a free market. In this case, would it not be better to allow some poorer farmers to enter into different working groups to possibly increase economic growth?
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