lectur17-page26 - Even with production controls direct...

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26 The government said, “ OK farmers, if you want these guaranteed government prices and deficiency payments, you have to sign a contract agreeing to cut your production by how much the govt. says to cut production. “It is important to recognize that this level of economic regulation comes from the people, and particularly farmers, and is not something that some one in government thought would be simply a good thing to do. Farmers have demanded price support and have lobbied for it through their farm organizations. Farmers have over the years consistently punished politicians who sought free markets by voting them out of office. Farmers of course would be happy to receive price support without any restrictions on production; however, this would push government costs beyond a level the the rest of the taxpaying public would be willing to support.
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Unformatted text preview: Even with production controls direct Federal payments in FY 1999 to farmers amounted to $28 billion or half of all net farm income. The Roosevelt administration represented a major increase in Federal economic regulation of agricultural, but it is best seen in the light of history. The Federal government has been involved in agriculture from its very beginning. It distributed land, without charge, to settlers willing to till it; it created a massive military establishment to protect that land from hostile native nations that claimed it as their own; it funded research on how to better produce crops and livestock; it chartered and subsidized canal companies, and later railroads, to provide means for transporting the commodities produced by farmers to foreign markets; it limited the tariffs...
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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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