The Washington Post reports that a federal program to help dairy farmers and ranchers hurt by drought has been expanded to benefit farmers untouched by drought conditions:
In all, the Livestock Compensation Program cost taxpayers $1.2 billion during its two years of existence, 2002 and 2003. Of that, $635 million went to ranchers and dairy farmers in areas where there was moderate drought or none at all, according to an analysis of government records by The Washington Post. None of the ranchers were required to prove they suffered an actual loss. The government simply sent each of them a check based on the number of cattle they owned.
It’s a typical story of government handout programs. Under “pressure from ranchers and politicians in a handful of Western states that were hit hard by drought,” the Bush administration in 2002 created a fund to compensate them. Within days members of Congress were demanding that more counties be included, and they were. But that still wasn’t enough, and in 2003 Congress expanded the program to cover any kind of weather‐related disaster. And then President Bush declared that the shuttle explosion over Texas constituted a disaster, so that made more counties eligible. County USDA officials were pressured to find any kind of “disaster” that would qualify local farmers for handouts.
The Post has run other articles in this series, with titles like Farm Program Pays $1.3 Billion to People Who Don’t Farm and Growers Reap Benefits Even in Good Years. Yet even with front‐page stories in Congress’s hometown newspaper, the farm program rolls merrily along, handing out more and more subsidies with less and less plausibility.
It’s enough to make you a public choice economist. So the question is, why doesn’t it make Washington Post and other mainstream‐media journalists and editorial writers more skeptical about the benefits of government programs? A great deal of what we know about the failures of government, or way that politics really works, comes from mainstream journalists. Yet many journalists continue to assume that every problem in society suggests a government program to fix it.