There is no question that a helping hand can leave a large and positive impact on a single person, or even a whole country. Sometimes, we as people can be changed just by a small act of kindness. We see millions of people all across the world helping those in need. Unfortunately, it is possible to provide more help than needed. The movie Poverty, Inc, does a great job illustrating the impact that subsidies and hand outs can have on society and entrepreneurs. The plot of the movie covers the consequences of foreign aid into Haiti after the catastrophic events that took place on January 12, 2010. The devastating earthquake left millions of people with out a home, food to eat, and cloths to wear. The outside aid had an impact at first that was very helpful, but with the implementation of subsidies into American rice farming, a large impact on the local rices markets followed suit. This caused a collapse in Haiti markets causing a backward spin into deep poverty. You may be asking, how does this circumstance in Haiti Connect with entrepreneurs? Subsidies affect a many markets in the United States. The subsidies can be the sole factors that generates production within a market. They are government grants that are given to those to produce a product in order to keep a product wildly available, or keep a product from changing. This is very interesting due to the concept behind it. The power a subsidies often goes unnoticed. A majority of American farmers are able to stay afloat with these government grants. Without them, there could be a large shortage of food due to a lack of farmers. Although the Farming industry is not the only marketer that is granted subsidies, it is the market that is the foundation of the movie. it shows how a subsidy can saturate a market. It also highlights the importance of understanding the market. Subsides can affect society in several different ways. We have already cover a couple different ways that subsidies have affected markets. With the influx of American rice in Haiti, it provided help to those who were not able to purchase food. Unfortunately, that also can provide a negative impact on society. As shown in the movie, the local Haiti farmers, or shoe makers are not able to produce and sell products due to the large influx of free products into the markets. This can be devastating for locals and can in return result in long term affects. Once the charity, or aid moves on to a new town, region, or even country, it can leave a community stranded. This is due to the shutdown of local markets. But then we run into the positives that outside influence can have on a market. These subsidies are given out for a good reason. It is important to help those around the world fight the battles that millions of people are facing all around the world. It is more important to understand the short and long term affects that is can leave on a community, or market.
