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Word Count: 1,179
Subsidies are payments economic concessions or privileges given by thegovernment to favor businesses or consumers In the 1930s subsidies were designed to favor agriculture John Steinbeck expressed his dislike of the farm subsidy system of the United States in his book The Grapes of Wrath In that book the government gave money to farms so that they would grow and sell a certain amount of crops As a result Steinbeck argued many people starved unnecessarily Steinbeck examined farm subsidies from a personal level showing how they hurt the common man Subsidies have a variety of other problems both on the micro and macro level that should not be ignored Despite their benefits farm subsidies are an inefficient and dysfunctional part of The problems of the American farmer arose in the 1920s and various methods were introduced to help solve them The United States still disagrees on how to solve the continuing problem of agricultural overproduction In 1916 the number of people living on farms was at its maximum at 32530000 Most of these farms were relatively small Reische 51 Technological advances in the 1920s brought a variety of effects The use of machinery increased productivity while reducing the need for as many farm laborers The industrial boom of the 1920s drew many workers off the farm and into the cities Machinery while increasing productivity was very expensive Demand for food though stayed relatively constant Long 85 As a result of this food prices went down The small farmer was no longer able to compete lacking the capital to buy productive machinery Small farms lost their practicality and many farmers were forced to consolidate to compete Fewer larger farms resulted Reische 51 During the Depression unemployment grew while income shrank An extended drought hadaggravated the farm problem during the 1930s Reische 52 Congress to counter this passed price support legislation to assure a profit to the farmers The Soil Conservation and Domestic
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