Re: economic systems??

jscharf@pearl.tufts.edu
Mon, 23 Dec 1996 11:14:04 -0500 (EST)

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.