In: Economics
How did the farm programs of the New Deal change the relationship of the federal government to farmers and rural communities? Briefly explain the trade-offs facing the federal government in determining how much support to provide farmers? How have those trade-offs impacted the type of policies enacted over the last 80-90 years?
ANSWER
The relation was changed as in the first year when
America was founded, the federal government concentrated on
distributing new frontier land to settlers who were migrating to
the new nation .One of the major problems of course , of
this effort was how to deal with the Native Americans who were
already living on the new land.
The second major period began in roughly 1830 when the
government began to help farmers grow more crops . The U.S.
established new universities that were supposed to find better
method of farming .
The third major period began in roughly 1800s when
lawmakers were forced to impose new regulations on the agricultural
markets , just as they did on business trusts and monopolies.
The trade offs that were faced are as follows
1. The federal government supported farmers directly .The
adminstration tried to support farmers by providing them better
credit and their farm produce to stabilize the prices. But
that just caused farmers to grow more ,which in turn
lowered prices even more.
2. The belief was that low prices were
caused by high production . The supply of crops and livestock was
much higher than the demand for those so the prices dropped.
The trade offs impacted the policies as - the
basic policy of the federal government has remained to keep prices
up by keeping production down . And this is a very real way in
which the Great Depression continues to affect those of us growing
up and living today.
Some of the parts of New Deal Programme that continues
today
AAA- the Agricultural Adjustment act of 1933
CCC- the Civilian Conservation Corps of 1933
FSA - the Farm Security Adminstration of 1935 and 1937
SCS - the Soil Conservation Service
REA- the Rural electrification adminstration