Public Policy: Cotton-Pickin' Solution

Consider the tattered state of Old King Cotton. To perpetuate 200,000 politically potent but economically inefficient small cotton farmers in the Southeast, the Government supports cotton prices at 33¢ a Ib. Since this is well above the present world price of about 23¢ a Ib., U.S. cotton exporters complain that they cannot compete in world markets. So the Government gives them an 8½¢-a-lb. export subsidy. But this distresses U.S. textile makers, who must pay 33¢ a Ib. for their cotton and howl that they are being swamped by imported textiles made from U.S. cotton that foreign producers buy at...

Want the full story?

Subscribe Now


Get TIME the way you want it

  • One Week Digital Pass — $4.99
  • Monthly Pay-As-You-Go DIGITAL ACCESS$2.99
  • One Year ALL ACCESSJust $30!   Best Deal!
    Print Magazine + Digital Edition + Subscriber-only Content on

Learn more about the benefits of being a TIME subscriber

If you are already a subscriber sign up — registration is free!