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Farm Subsidies - A Necessary Evil? - College Term Papers

Farm Subsidies - A Necessary Evil?


?
Subsidies are payments, economic concessions, or privileges given by
the government to favor businesses or consumers. In the 1930s, subsidies
were designed to favor agriculture. John Steinbeck expressed his dislike of
the farm subsidy system of the United States in his book, The Grapes of
Wrath. In that book, the government gave money to farms so that they would
grow and sell a certain amount of crops. As a result, Steinbeck argued,
many people starved unnecessarily. Steinbeck examined farm subsidies from a
personal level, showing how they hurt the common man. Subsidies have a
variety of other problems, both on the micro and macro level, that should
not be ignored. Despite their ...

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The
use of machinery increased productivity while reducing the need for as many
farm laborers. The industrial boom of the 1920s drew many workers off the
farm and into the cities. Machinery, while increasing productivity,
was very expensive. Demand for food, though, stayed relatively
constant (Long 85). As a result of this, food prices went down. The small
farmer was no longer able to compete, lacking the capital to buy productive
machinery. Small farms lost their practicality, and many farmers were
forced to consolidate to compete. Fewer, larger farms resulted (Reische 51).
During the Depression, unemployment grew while income shrank. "An extended
drought had aggravated the farm problem during the 1930s (Reische 52)."
Congress, to counter this, passed price support legislation to assure a
profit to the farmers. The Soil Conservation and Domestic Allotment Act of
1936 allowed the government to limit acreage use for certain soil-depleting
crops. The Agricultural Marketing ...

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PAPER DETAILS
Added: 11/10/2005 03:53:40 PM
Category: Economics
Type: Premium Paper
Words: 1178
Pages: 5

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