Rising food prices?

Question

food prices have jumped significantly, Some countries subsidize the production of its agricultural goods in order to overcome the problem of rising food prices. Is the method effective??

Will subsidies be effective in solving the problem?

give some points to support its effectiveness and some points to refute its effectiveness

Answer 1

When a consumer consume more and more of a purticular food (especially in the third world country) it's price will increase!!

Answer 2

Subsidies don't work for long, because they end up bleeding the nation's treasury of cash. Only to keep the people from feeling the real pain at the pump or grocery store.  

Subsidies  are only a short term fix for political gain. They don't solve the problem and only create a major economic problem down the road.

Answer 3

Subsidies are BAD because it costs the government $$ and the government gets its money from TAX PAYERS!

Subsidies also ENCOURAGE farmers to grow certain crops as well even though we might NOT be as good as OTHER countries in making that particular crop.

When the government gives out a subsidy, it inflates the market for that crop and creates a disparity of total output in comparison to lets say... CHINA. Example: China is has rice patties suitable for growing rice, but you give AMERICAN farmers a subsidy to produce rice as well. This is good for the farmer, but bad for the government. This protects farmers and makes the chinese worse off because we aren't buying rise from the chinese.. instead we're buying rice from the domestic farmers who are receiving subsidys + market price.

Subsidys are made to encourage production or to keep production "afloat", but it has negative effects where it would be easier/cheaper to buy rice from China.