Subsidy gone

New Zealand's government used to subsidize farm production. That is, it paid farmers to grow what the government wanted them to grow. A subsidy is money or financial favor. In the 1980's, subsidies were discontinued. Farmers would have to make their own decisions.

There have been good results:  "Since the reforms, New Zealand farmers have cut costs, diversified their land use, and developed new products," like 2200 dairy products compared to the 35 they used to produce.

  

photo: radionz.co.nz

But there is a bad result. Certain bureaucrats (the ones who used to tell farmers what to grow and how much they would be paid) have lost their jobs. They will have to get a new job, maybe making something that people want. So the government overall has lost some power over the people, who are now more free to create and innovate.

 Wait . . that's a good result.

(cont'd tomorrow)