Comment by csours
8 hours ago
Of all the guns that rural Americans love, the humble foot-gun is the most beloved.
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Someone else can argue the morality, ethics, economics, and politics of it all, but VERY simply, US Federal Government Agencies are machines for redistributing wealth from cities to rural areas.
Rural America voted quite heavily to stop those subsidies. That's what efficiency means.
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Maturity means suspending judgement and listening to people you disagree with, but I feel that's very out of style these days.
I agree. Personally I don't understand the love that agriculture shows to the Republican party, but hey you get what you vote for.
It seems like this whole year has been implementing policy after policy that screws over agriculture.
USAid (big purchaser) gone. 40 billion sent to Argentina. Antagonize Canadians (Canadians !!) so they boycott American produce. Tarif China so they'll reciprocate on soy beans. Deport farm workers. Tarif imports of steel so machine costs go up. Tarif fertilizer so production costs go up. Tarif everything else to reduce consumer spending power.
Despite all this farmers will continue to vote republican this year, and in future years. I presume they have reasons, but I confess they are hard to understand.
The Republican party has a well polished message assigning blame to anyone else: gays, Muslims, illegal immigrants, trans people, feminists, government employees, etc etc etc. If only they can put those people in their places, prosperity will rain down on the proper Americans. As it did in the 1950s when those people didn't exist.
It works. And it will keep working.
Yes. It's very effective, very dangerous, and it's not at all unique to America; the exact same approach results in high-minority vote shares across Europe.
I am not a US citizen, just an observer.
What is the alternative when the Democrats appear just as much beholden to corporate finance, and position themselves as the party for city dwellers?
I also disagree on the wealth redistribution. Government agencies are managers of risk. *
Is there a risk to the country's food security if farmers go bust on mass? Then the Government needs to mitigate that risk. Fairly simple.
* This was the explanation from the director general of non-US primary industries department as to the whole reason they exist. Managing biosecurity risks are particularly important, but also managing fishing stocks and helping farmers mitigate their risk.
Voting for Democrats is the alternative.
If the Republicans get voted out and become powerless, they (or the successor party) will have to be better to regain power.
Anything else is some accelerationist nonsense.
i would love to hear Farm-To-Taber answering this. she, a farmer and farm worker, ran as a democrat. i really like and recommend her podcast: https://www.youtube.com/@FarmToTaber
she regularly does episodes about politics in regards to farming.
You are correct, no replies but people don't like your message.
Isn't most ag in the US just big business at this point?
Sure, there are still some small farms.. but there are also rich folk like the Treasury Secretary who maintain farms for status and financial benefits(farms get all sorts of special treatment for taxes, bankruptcy and inheritance).
>farms get all sorts of special treatment for taxes, bankruptcy and inheritance
When I see the amount of exploits the wealthy use to avoid taxes and maximize profits, I realize working a 9-5 job is for fools, considering how much taxes I'm paying on my salary.
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This is incorrect. He divested. Google AI tells me:
This is nonsense. The US has a 20B USD currency swap agreement with Argentina. Currency swaps aren't free money. It is basically a line of credit between central banks. When you use it, you pay interest on the borrowed money. You would be surprised how many of these exist with the Big Three (US/EU/JP) central banks with other, smaller central banks.
Source: https://www.congress.gov/crs-product/R48780
However, there is very little info about how and when Argentina used it. No tin foil hat here: I'm unsure if this lazy reporting, or lack of transparency (intentionally or accidental). Here is the best that I found: https://www.batimes.com.ar/news/economy/argentina-used-multi...
Final point: It seems like everything I read about highly developed nations: All of them have massive gov't subsidies for agriculture which makes sense from a food security (+influence) perspective. Weirdly, it also seems like most people involved in farming are also fiscally conservative and probably vote right of center. Are there any countries where this isn't true? (I think of one -- NZ has little to no farming subsidies now.)
A currency swap absolutely isn't "basically a line of credit". Any swap is a credit agreement insofar as each party is committing to future possible liabilities, but a currency swap is a very standard instrument which is part of central banks' monetary policy toolkit and helps them in their mandate to ensure currency stability. Swaps can be extremely flexible so the terms differ wildly, but they're not generally a line of credit that can be drawn from, they're an agreement to pay or receive amounts based on future movements of some underlying rates.
So what is a currency swap. Well any swap is an agreement with at least two legs, a pay leg and a receive leg. The normal type of swap is a interest rate swap so say I agree to pay you every month 3% fixed interest on 10m USD and you agree to pay me some floating rate (say 3m usd libor + 100bps) interest on the same amount. So every month we do a calculation where if libor+100 is greater than 3 then I pay you otherwise you pay me. We might do this to hedge our interest rate exposure. Like say you're a bank and I'm a bank and most of my borrowers are fixed rate mortgages and most of my savings accounts pay floating rate interest. I want a hedge so the floating rate doesn't end up costing me too much.
A currency swap is like that but with different currencies. So say we change things so it's 10m USD on one side and 15m EUR on the other side and we agree to exchange principal amounts. So that sets an exchange rate of 1.5 as well as the interest rate thing from before. If interest rates or exchange rates now move, this provides a hedge. So the hedge now is not just against the rate changing but also against the currency moving adversely. Central banks use this to ensure the import/export vs domestic balance of their economy is appropriate given the levels of trade between nations and also as a hedge against adverse currency movements affecting both assets they hold (yes they hold bonds etc) and their outstanding debt (which for the Fed will include "Eurobonds" they have issued in other currencies than USD).
https://www.investopedia.com/terms/c/currencyswap.asp is a general explanation
https://www.ecb.europa.eu/ecb-and-you/explainers/tell-me-mor... is the perspective of a central bank on currency swaps and their use
I've been curious about this myself, and I listened to some pro-Trump people who seem otherwise intelligent that tried to explain this effect.
One common theme has been that farmers are by necessity highly independent. They can't rely on government services as much as city folk, because everything and everyone is potentially an hour's drive away. They don't see the effect of their taxes being spent, because their local roads are dirt roads, there's no traffic lights, no police cars[1] or ambulances zipping by on the regular, etc...
Conversely, they do get frustrated by the likes of the EPA turning up -- invariably city folk with suits and dress shoes -- telling them what to do. "You can't burn this" or "You can't dump that!". More commonly "you can't cut down trees on your land that you thought were your property".
Their perception of government is that it violates their God-given rights regularly and gives little in return.
The further the seat of power, the worse their opinion of it. Local councils they might tolerate, state governments they view with suspicion, and the federal government may as well be on another planet.
Hence, their votes are easily swayed by the "reduce federal government" rhetoric.
We all know this is as an obvious falsehood: Trump grew the size of the federal government with his Big Beautiful Bill! So did every Republican government before him for quite a while now!
That doesn't matter. Propaganda works. The message resonates. The voters will vote against their own interests over and over and over if they keep hearing something that resonates with what they feel.
PS: A great example of this are the thousands of unemployed people that lost their coal mining jobs. Trump lied through his teeth and told them they would get their mining jobs back. Hillary told them they could be retrained as tech support or whatever. They. Did. Not. Like. That. They wanted their jobs back! So they voted for Trump, who had zero chance of returning them to employment because they had been replaced by automation and larger, more powerful mining machines. Their jobs were gone permanently, so they doubled down by voting against the person who promised to pull them out of that hole. Sadly, this is a recurring theme in politics throughout the world.
[1] As an example, this is why they're mostly pro-gun! They know viscerally that if someone broke into their property, they'd have to defend themselves because the local police can't get there in time to save them.perception.
I buy all this, and I think your analysis is spot on. There's z log of cognitive dissonance going on here.
>> One common theme has been that farmers are by necessity highly independent.
I think they like to think of themselves as highly independent. But in truth of course they are highly dependent, on city customers for their product, on foreign countries for exports, on federal govt for subsidies (both direct and indirect), on suppliers for machinery, seed and fertilizer, and in some cases on immigrant labor.
Just as we are dependent on farmers. It's all interconnected.
Ironically they may tolerate local govt, and had federal govt, but they are most dependent on fed govt policies.
They do of course have many legitimate grievances, but I'm not sure that voting for the party that seems to hate them is a winning strategy.
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> They don't see the effect of their taxes being spent,
They are quite aware of taxes because 13.5% of their income on average comes directly from federal subsidies paid by taxes on "city folk".
https://usafacts.org/articles/federal-farm-subsidies-what-da...
> The voters will vote against their own interests over and over and over if they keep hearing something that resonates with what they feel.
Most large farm owners are very well off and are absolutely voting in their own interests for the party whose primary goal is to cut taxes on the wealthiest while cutting government support for the poorest.
The rural working class and poor on the other hand are however often voting against their economic interests, but their economic situation has long been ignored by both partie, so having given up hope for economic change, they often vote on culture/identity issues.
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>and I listened to some pro-Trump people who seem otherwise intelligent that tried to explain this effect.
If all you know is by listening to people recently on TV then you don't know farmers very well.
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"because everything and everyone is potentially an hour's drive away."
Which only 1h because of federal subsidies as rural communities learn. Without health subsidies many hospitals will close, and it's no longer a 1h drive but a 5h drive.
People often live in a delusion on why things are the why they are - their explanation often is the one that suits them most (also see USAid).
> I presume they have reasons,
They vote with the one party because they didn't had a lot of problems with it in power and, when they voted something else, it was worse.
Between two evils, people prefer the "familiar" one. Works the same in Europe's "democracies".
Nah. This is not true. They voted, because they looked forward the harm to liberals and cities and lgbt and women who dont conform and non whites. They wanted other to be harmed and openly talked about it. They thought they will be harmed only a little, like the last time.
Historically, republicans were not making policies good for them. By they promissed to be cruel and that was appealing.
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> Maturity means suspending judgement and listening to people you disagree with, but I feel that's very out of style these days.
This applies to all of us these days. I'll lump myself in there too. I don't care what "side" you are in, if you get angry hearing someone you disagree with politically you're not helping matters any. We're too polarized. I wish we could stop with the bickering and find common issues we agree on and agree on the solutions and push our reps from 'both sides' to fix the issues in a way we can all agree on. The political theater is too exhausting and unhealthy.
It's more that farmers are through feeding city leeches. I don't think they care a lick about your "wealth"
That would bankrupt the farmers so I don't get this?
Says the guy on a computer.