Common_Agricultural_Policy_and_Adam_Smith

Common Agricultural Policy and Adam Smith The Common Agriculture Policy and Adam Smith In the wake of an increasingly globalized economy, one that has seen the emergence of large trade blocs and common markets, the nations of the world have been competitively forced into becoming more economically integrated year after year. In light of hundreds of years of consumer theory, this would almost certainly lead one to a conclusion of necessarily lower prices and more efficient production on almost all products. However, as is the case in many nations, the European Union (EU) has succeeded in creating an artificial market for agricultural products through the use of a Common Agricultural Policy (CAP). It is the focus of this analysis to outline the framework of the Common Agricultural Policy of the European Union, analyze strictly the negative effects it creates on welfare, and exhibit such effects through the examination of one nation’s (United Kingdom) struggle with the Common Agricultural Policy. In light of the CAP, the controversy of government intervention has also have been a major issue. Should the governments of the EU interfere with the agricultural market to help it’s own economy, and what would Adam Smith think of this' cap, agricultural, policy, european, eu, products, farmers, union, smith, production, common, food, agriculture, prices, economy, countries, been, percent, market, consumers, because, society, goods, sector, labor, industries, government, caused, world, trade, quality, produce, one, europe, book, through, net, invisible, higher, hand, capital, taxpayers, resources, markets, industry, however, effects, economic, cost, community