What Hath Big Government Wrought?


How a 1970s-era change in agricultural policy led to a fatter, sicker America in dire need of Nationalized Health Care

When I was a kid (mid- to late-’60s), nightly TV news shows were everyone’s source of information. Alongside from the flickering bland-and-white coverage of the Vietnam war and protesting hippies, I distinctly remember stories that would be foreign to us in 2009: food prices.

Yes, food prices. Right there in the segment where today you’d expect to see updates on gasoline prices, you’d have David Brinkley or Walter Cronkite or Howard K. Smith used to report on the prices of beef, chicken, bread, milk or eggs.

Food was dear back then. About 1972, Big Government changed that, and thereby sewed the seeds of today’s “Health Care Crisis”. Let’s connect the dots.

The early ’70s were the era of Nixonian price controls. Around that time, agricultural policy changed, too. Beginning with the New Deal, the USDA actively managed agricultural commodity markets with a system of price supports and by telling farmers what they could and could not grow. This was an effort to avoid the farmer’s #1 dread, the commodity surplus, in which a bumper crop leads to price collapse and financial failure for the farmer.

Nixon’s Secretary of Agriculture Earl Butz instituted direct payments to farmers, effectively ending the “price floor”. Instead of paying farmers to leave fields fallow, Uncle Sam actively encouraged the production of soybeans, wheat, corn or whatever crop. Some of the excess commodities made their way overseas as foreign aid, and some were sold to the Soviets who had busted a Five-Year Plan or two. From the blog Alterdestiny:

The effect of Butz’s policy was to make it in farmers’ interests to grow as much corn as possible. This led to an immense amount of corn. The food industry began inventing ways to use that corn. The most profitable and widespread was high fructose corn syrup. This was invented in 1980 and today makes up an enormous part of our diet. Corn syrup replaced sugar in many products, most notably soda. And when just changing from sugar to corn syrup wasn’t enough to consume all that corn, the soda companies just made their products bigger. Americans liked that a lot. High fructose corn syrup found its way into many other foods as well, from hot dogs to ketchup to chips to bread. All of this corn-based sugar that Butz and his agribusiness friends forced us to eat has led to not only high levels of obesity but also the epidemic of Type 2 diabetes that we are now only coming to terms with.

[emphasis added]

So food is no longer dear.

Fast food chains now compete, not on price, quality or service, but on how many calories they can pack onto their $1 menu: “Want to ‘Biggie Size’ those fries?” The smallest size soft drink at McDonald’s today was the biggest size you could buy in 1973, when I worked there. Since corn is also used as animal feed, beef and pork are cheaper. Corn surpluses led to the search for new markets, so now we have to burn ever-increasing quantities of inefficient and environmentally-damaging corn ethanol in our cars. We’ve effectively subsidized ADM’s and Cargill’s entry into the motor fuel business.

Another USDA policy changed in 1969. Up until then, USDA maintained stockpiles of agricultural commodities that it would distribute, in kind, to the needy. In particular, I remember the large blocks of “government cheese” and the generic labels on honey and canned goods that were distributed.

Those were replaced with Food Stamps, and the government commodities were replaced in poor people’s diets by whatever they chose to eat, regardless of caloric content or nutritional value.

Hey, all of that high fructose corn syrup’s got to go somewhere.

Thanks to government-subsidized food prices and free government money, America now has the fattest, sickest and most nutritionally deficient poor population on the planet.

And so we need government-run health care.

Huh? Are we nuts?

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26 Comments Leave a comment

Interesting Vladimir

ObamaNo Thursday, November 12th at 6:18PM EST (link)

We must be about the same age (I’m 47) because I remember those same newscasts where they talked about a war I didn’t understand and I do remember them talking about food prices.

It’s just more proof that the government causes problems and then tries to fix them. In doing so, they make things even worse.

 

Speechless

VizBiz Thursday, November 12th at 6:25PM EST (link)

Great diary. It just shows the power of unintended consequences.

Runs with scissors, walks with Wacom.

Or...Intended consequences? -nt

Erick Brockway Friday, November 13th at 12:52AM EST (link)

Note to lefties;
“Don’t be afraid to see what you see.”
Ronald Reagan


Chip in to get rid of “Babs” (Yes ma’am) Boxer.

 
 

HFCS vs. cane sugar

Bioinformaticus_Maximus Thursday, November 12th at 6:29PM EST (link)

Another angle on this is the price supports and tariffs that cause sugar in the US to be 75% more expensive than elsewhere. Mexicans drink Coke with sugar, but because of the awful policies of several administrations (and the fact that our first in the nation contest is held in Iowa), it is much cheaper for food companies to put HFCS (high-fructose corn syrup) in our food than sugar.

Mexican Coke tastes better

Mexican Coke tastes better #2

Why HFCS is bad.

I would also like to point out that in 2008, among the Presidential candidates, only McCain spoke truth to power in Iowa saying that he would end subsidies.

In theory, theory and practice are the same.
In practice, they are not.
-Attributed to Yogi Berra

Outside Lansing
Oakland Politics

Mexican Coke? Delicious. Think I'll grab one on the way home.

Third Street Thursday, November 12th at 7:30PM EST (link)

They actually stock Mexican Coke in stores here in south Louisiana. A small fringe benefit of illegal immigration.

 
 

soft drinks

snopercod Thursday, November 12th at 6:46PM EST (link)

Back in the fifties and sixties, it was very rare that anyone kept soft drinks at home.

good point snopercod, I don't remember coke at home

Cheryl Thursday, November 12th at 7:21PM EST (link)

until the 70s. We drank kool-aid and hawaiian punch. Also, a large coke was what is today’s small or regular sized coke. NEVER were there coke machines at schools, it was milk or water. I was floored to find out they have vending machines at elementary schools today.

 
 

Fascinating...

Third Street Thursday, November 12th at 7:27PM EST (link)

…wish I could rec this. I’m 31 and always was curious about the reports on food prices I’d see in old papers and clips of news broadcasts from the ’50s and ’60s. Why, I would wonder, were they reporting on this stuff; why was it relevant to anyone other than farmers? Another illustration of the creep of government and its power to screw up a society before we’ve even realized it.

If there is one thing that might yet stop nationalized health care, it is that the Democrats really screwed up and forgot to “creep”. Instead of the incremental, boiling-frog approach that would gradually implement socialized medicine one small step at a time over many years (not that they haven’t been working on that for a long time), they’re trying to ram through the whole enchilada in one fell swoop. While we may not notice the removal of a single brick in the wall — such as the gradual disappearance of news reports on food prices — we damn well notice when they try to take a wrecking ball to the whole building during a single Congress.

The Left has gotten so arrogant that they don’t even bother trying to hide what they’re doing anymore. That is what will undo them.

(Now I’m having second thoughts about ordering that $10.99 six-meat pizza from Papa John’s.)

 

If you really find this topic interesting...

nickinvirginia Thursday, November 12th at 7:55PM EST (link)

Then watch the Documentary Food Inc., which explains how the corn/farm lobby in this country combined with fast food restaurants and our poor sense of nutrition in general, has created a self-perpetuation of poor food quality. Also, becaus we simply give all of this excess away to other countries in aid, thy have stopped a lot oftheir farming, which is detrimental to their own well being. It’s a fascinating documentary….sort of like Upton Sinclair’s “The Jungle”, but for the 21st century.

 

From the left, I agree!

Satori Thursday, November 12th at 8:06PM EST (link)

I’m a liberal, although I read RedState and a couple other conservative blogs to keep a balance on my information intake. But I gotta say, I agree with this diary 100%.

Agricultural policy in this country is completely out of whack, and I’m glad to see that people on the right are seeing it, too. There are definitely those on the left that want to see changes in these policies, as well. Maybe activists on both sides can start pressuring Congress to develop a better food policy in this country.

Welcome

VizBiz Thursday, November 12th at 8:34PM EST (link)

Nice to have a conversation with a liberal instead of a face off. Respectfully I disagree to the extent that more policy creates these situations. Conservatism means to provide the opportunties for businesses and protections for the consumer. It’s a delicate balance. Glad to have you aboard.

Runs with scissors, walks with Wacom.

policy

Satori Friday, November 13th at 9:00AM EST (link)

I understand what you’re saying, although I don’t necessarily mean creating more active policies. Reducing subsidies is a policy change in and of itself. When Congress next takes up an agriculture bill, they need to feel pressure to not continue to create incentives for unhealthy food production.

I’m sure we disagree on Congress’ role in creating other incentives, but I’m fine with having allies on the other side to get rid of the screwed up incentives currently in place. :)

 
 

Satori, thanks for commenting.

Vladimir Thursday, November 12th at 9:00PM EST (link)

The lesson that a conservative takes from this tale is not to look to Congress for guidance.

There may be some smart individuals in Congress, but when they act collectively, they’re a bunch of imbeciles. They never foresee the consequences of their actions.

One thing for sure, take the highest estimate of the cost of National Health Care, triple it, and you probably have a conservative estimate of the real cost.

There is no opinion, however absurd, which men will not readily embrace as soon as they can be brought to the conviction that it is generally adopted. - Arthur Schopenhauer

 
 

Terrific piece!

smitch61 Thursday, November 12th at 8:17PM EST (link)

Great read…. You took me back quite a few years too!! I remember the news stories on the price of food… I had not thought of that in a very long time. I can vividly remember my parents asking : ” Did you here on the news about the price of meat today?” The would shop accordingly… and remember, we did not have deep freezers back then to stock up when the prices were good.

Right, lots of folks had deep freezes...

Vladimir Thursday, November 12th at 8:55PM EST (link)

…and even commercial storage lockers for bulk meat purchases.

There is no opinion, however absurd, which men will not readily embrace as soon as they can be brought to the conviction that it is generally adopted. - Arthur Schopenhauer

 

That's what I do

Menlo Thursday, November 12th at 9:40PM EST (link)

I just respond to the grocery store sales rather than the market prices (assuming there is a difference).

“Guess which party these big insurance companies favor? Big companies love big government.” -Ann Coulter

 
 

Great diary...

antisocial Thursday, November 12th at 9:23PM EST (link)

Another example that shows why regulation/control is bad. These policies have destroyed the balance.

No you can’t - Moe Lane
——————————
The Emperor has no clothes!!!
——————————
Republicans who lost the Crap-and-Raid fight in the House -
Mary Bomo Mac (CA-45)
Mike Castle (DE)
Mark Kirk (IL-10)
Frank A. LoBiondo (NJ-02)
Chris Smith (NJ-04)
Leonard Lance (NJ-07)
John M. McHugh (NY-23)
Dave Reichert (WA-08)

 

I don't eat HFCS

Menlo Thursday, November 12th at 9:28PM EST (link)

I had to quit soft drinks because they were too bloating. Besides the carbonation, fructose can be difficult to digest and thus gas-producing. Otherwise, I don’t eat anything with a long ingredient list, and I don’t eat out.

I am stunned by people I see consuming these ENORMOUS drinks and these HUGE servings of food given by restaurants. I don’t know how they keep their stomach from rupturing.

I have to admit I am very thankful for regular corn syrup and maltodextrin, both of which came long before HFCS.

I do believe it is people’s own fault who choose to ignore nutrition and ingredient labels or to remain ignorant. Nearly all Americans continue to enjoy a big enough selection of any food in the world for most anyone to get anything he or she could want any day of the year, and anywhere in the country at mostly affordable prices. That was not always the case.

“Guess which party these big insurance companies favor? Big companies love big government.” -Ann Coulter

 

Unintended consequences...

silverbelle1008 Thursday, November 12th at 10:28PM EST (link)

The seventies also introduced the microwave,highly processed foods that could be zapped, Mom’s went to work and we became a society of two family incomes - all unintended consequences….

 

My Daughter

hickorystick Thursday, November 12th at 11:27PM EST (link)

had to go on a Gluten free, Casein-free and Corn-free diet. I began to read labels carefully. Unbelievable the amount of things either corn or wheat is put into. We have been shopping at Whole Foods and PCC because they put products on the shelf that do not contain harmful ingredients. It’s a little weird shopping around people wearing hand-knit wool caps etc. but gotta admit, they aren’t fat.

I started shopping at a health food store

mom2oneson Friday, November 13th at 12:28AM EST (link)

for the same reasons - my son’s diet but not the same needs as your daughter. I wanted to post this site, she is is the one that started hillbillyhousewife but has this site now that is GFCF http://www.frugalabundance.com/

That is so funny you said that no fat at the healthfood store that is so true. I am always the only plus sized person in there.

Neat Web Site

hickorystick Friday, November 13th at 1:52AM EST (link)

I bookmarked it. My daughter also has the same condition. The diet among other things has worked wonders. We keep the diet very strictly. We added corn to the restriction because it seems to help. We cook almost everything from scratch.
I also agree with your second posting. These subsidies keep prices artificially high. They also buy a lot of prepared foods of poor nutritional value. I have always marveled that a person on food stamps buys anything but raw ingredients. If they are desperate enough to ask others to subsidize there food, why would they also pay the additional cost for the food to be prepared for them too?

Sickning

VizBiz Friday, November 13th at 6:46AM EST (link)

In addition to our small business, my wife took a part-time job at large grocery chain. She comes home with ridiculous food stamp stories. Yesterday she checked out a young lady using food stamps for extremely high quality food. She had multi- colored hair and a fresh tattoo on her FACE! My wife then watched her get in her brand new Range Rover (30 day tags). She was also incredibly rude. My wife said that only a third of the people she sees on food stamps appear to actually need them. Sigh……

Runs with scissors, walks with Wacom.

it could be a boyfriends or parents car

mom2oneson Saturday, November 14th at 5:34AM EST (link)

Most women I know on fs or not under 45 that are single have a boyfriend that helps them in some way. I only know a handful that don’t have a boyfriend or go from bf to bf. OTOH She could be married and maybe it’s a parents or relatives car. I know the same thing where a married women will not work to keep public assistance benefits for the household (even though she may be sanctioned herself from only her food stamp allotment for not working) and she may have “help” from her or his parents like maybe it’s their car she is using. I guess I’m saying I doubt she owns it but has access to drive that vehicle. Public assistance only counts income and assets and it’s just a paper trail. Someone could be living with a boyfriend but have them sign then they are “renting” a room (to show the shelter expense) and it’s acceptable to the caseworker.
The prepared food/high quality food is becuase the allotment amounts are sometimes high compared to how much food they need especially if there are young children in the household. Young children do not come close to eating how much their allotment is, especially with WIC buying milk or formula. The larger the household the higher the benefit amount. I do think that is one thing that should be changed, for young kids the benefit amount should be reduced some. IF they are in daycare or preschool or school they are probably eating breakfast and lunch there too. Some schools are sening home snack bags for the weekend too. That could leave a situation where the mother has more allotment than she coudl realistically eat if she only bought basic foods. There is no reason for them to spend less than what they are given, the full benefit appears again the next month. The full benefit amount of food stamps is pretty high. Combine that with a small child, WIC and school food and there is plenty to spend. If someone gave you $600 or $800 a month to spend on food and only food and you really couldn’t eat that much buying rice and beans and chicken it would change anyone’s buying habits.
In defense of those on public assistance I’ve found people of all income levels not real interested in cooking basic foods or learning how to coupon or stretching what they buy. I’ve met a lot of people that were comfortable for a LONG time with now reduced incomes that don’t really know how to deal with it and aren’t too interested in learning but think they are really bad off when there is a lot more they could be doing. So it could just be a reflection of our culture in some ways too. I sound really judgemental but I don’t mean to be. :( I’m just talking from the few experiences I’ve had this past year. The exception here are Mexican immigrants, they seem to well with making rice and beans and basic foods.

Sorry your wife has to deal with rude people I bet she is mentally and physically exhausted at the end of her shift. It’s hard to deal with the public and I bet people are especially rude being rushed to get out of a grocery store.

full benefit amounts

mom2oneson Saturday, November 14th at 5:48AM EST (link)

Here are the full benefit and gross income levels to qualify. You can see how the # of children drives up the benefit for what I wrote about about above.The first number the household size and the second is the benefit amount. It might be different for AK and HI and PR.

1 $ 200

2 $ 367

3 $ 526

4 $ 668

5 $ 793

6 $ 952

7 $ 1,052

8 $ 1,202

Each additional person… $ 150

 
 
 
 
 
 

well doesn't this stuff have to be authorized

mom2oneson Friday, November 13th at 12:33AM EST (link)

from year to year? Why do republicans keep voting for food stamps and this subsidies? I think food stamps hurt the poor in some ways especially those that don’t use them because it increases food prices. If you go to a store where everyone uses food stamps you will see this. The prices would have to drop if so many people didn’t have a basically unlimited food budget each month. It’s the same thing with medicaid and schip the price of pediatrician visits would drop so many did not have the gov payment.

 

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