lectur17-page25

lectur17-page25 - a need of the man who grew it which would...

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25 Farm Programs Based on a Supreme Court ruling in 1943, our Constitution does allow direct government control of agriculture. However, recognizing that direct government control may not be politically palatable to the citizenry, agricultural producers are essentially “bribed” by government to cut production. Government offers producers guaranteed prices for their commodities and direct treasury subsidies in return for “cooperation.” because being in marketable condition such wheat overhangs the market and if induced by rising prices tends to flow into the market and check price increases. But if we assume that it is never marketed, it supplies
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Unformatted text preview: a need of the man who grew it which would otherwise be reflected by purchases in the open market. Home-grown wheat in this sense competes with wheat in commerce. The stimulation of commerce is a use of the regulatory function quite as definitely as prohibitions or restrictions thereon. This record leaves us in no doubt that Congress [317 U.S. 111, 129] may properly have considered that wheat consumed on the farm where grown if wholly outside the scheme of regulation would have a substantial effect in defeating and obstructing its purpose to stimulate trade therein at increased prices....
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This note was uploaded on 12/29/2011 for the course ECO 210 taught by Professor Malls during the Fall '10 term at SUNY Stony Brook.

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