Government intervention in food and fiber commodity markets began long ago. The classic case of farm subsidy through trade barriers is the English Corn Laws, which for centuries regulated the import and export of grain in Great Britain and Ireland. They were repealed in 1846. Modern agricultural subsidy programs in the United States began with the New Deal and the Agricultural Adjustment Act of 1933. With trade barriers already in place for agricultural commodities and everything else, this law gave the government the power to set minimum prices and included government stock acquisition, land idling, and schemes to cut supplies by destroying livestock.
Organization |
The Concise Encyclopedia of Economics |
Publisher |
Library of Economics and Liberty |
Publication Views |
389 |
Material Type |
Written Material |