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Re: economic systems??



As I understand the history of subsidies, they began when US production
outpaced demand.  It seems logical: how could six million different
production units (farms) hope to produce just the right amount when they
did not have a coordinating body?  

Agriculture had a profitable open market in the 1910's until bankrupt
Europe couldn't afford our prices - but American farmers kept
producing...as individuals.  So prices plummeted in the 20's.  Govt.
intervention was minimal, yet many farmers were hurt.  Big subsidies
didn't happen until the mid 1930's.

I used to find the Tragedy of the Commons very overused.  But now I
realize that it applies to American agriculture over and over.


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