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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.
References: