Farm Follies Revisited

April 8, 2008 / Add comment

Using the European Union's common agricultural policy (CAP) as a case study, The Economist demonstrates how quotas bog governments down in over-politicized marketplace policies which serve special interest groups and lead to entrenched, harmful economic programs. Older farmers rely on quotas as pensions, while young farmers have difficulties entering the marketplace and countries cannot trade their allotment to capitalize on their comparative advantage. The Economist criticizes the EU's continued free-market intransigence, but predicts that the unpopular 2 percent quota increase will still pass next month.