Freemason9
Gold Member
- Aug 14, 2012
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How does a government subsidy create natural demand? Just asking.
Food stamps are currency for purchasing food products. The market, therefore, creates demand--and the suppliers (farmers) have no alternative but to react to demand if they want to stay in business. If you are confused by the term "natural," I use it in an economic sense. It is the natural demand of consumers.
Food stamps are subsidies. You're giving people something that was taken from someone else. It creates artificial demand and nothing more. There is nothing "natural" in markets regarding wealth redistribution.
No, consumers desiring food and obtaining it is a most natural demand. You oppose it because you believe they don't deserve help, but that's your personal belief. It has nothing at all to do with economics.