The Incentives Lab
Civilization Level · Lesson 008

Subsidizing Sickness

The food-to-disease loop the U.S. government funds on both sides.

The U.S. subsidizes the calories that cause the disease, then subsidizes the drugs that treat it. Both sides win. The patient loses.

Corn, soy, wheat, rice, and dairy receive the bulk of federal commodity support. Fruits and vegetables receive a fraction. The price signal at every checkout reflects exactly this asymmetry.

Downstream, Medicare and Medicaid pay for the metabolic diseases the upstream subsidies produce — diabetes, cardiovascular disease, fatty liver. The same taxpayer funds both ends of the loop.

Closing the loop requires shifting subsidy weight toward nutrient density and tying agricultural support to public-health outcomes — a politically hard, structurally simple redesign.

The Structural Flip

Subsidize the outcome you want on the table, not the commodity that produces the disease.