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Subsidies

Subsidies

Subsidies are payments, economic concessions, or privileges 
given by the government 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 our economic system.
        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 32,530,000. Most of these farms were relatively small 
(Reische 51). Technological advances in the 1920's brought a variety 
of effects.

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