Explain What Caused The Dust Bowl Of The 1930s

Food is a rivalrous good because once a meal is consumed, another person cannot consume it. Food is also excludable because ownership rights can be defined for it. As in, if one pays for it, it is defined as theirs. Since food is rivalrous and excludable, food is also viewed as a private good that seems to have more negative externalities than positive externalities. One of them being the ecological effects that result from producing the food such as the excess topsoil which is what caused the dust bowls of the 1930s. The government became involved in subsidizing food production because they were in midst of the Great Depression and were reacting to falling crop prices caused by overproduction. Essentially, farmers were producing too much and prices began to fall, so the government would pay farmers to not plant more in hopes of the prices rising for the next season. The government was trying to step in and resolve the current farm crisis (policy myopia)

The farmers are the ones mostly benefiting from this government intervention as they have a sense of security in the market as they can enjoy high prices but still be protected from below-average prices, not to mention the direct payments they once received. Consumers also benefit as we are not having to pay incredibly high prices for certain foods (mostly just grains and cotton). However, consumers still pay their taxes which will ultimately be going towards these subsidies in the first place. This is a negative consequence of farm subsidies that we all must pay for. The market is also distorted because the subsidies directly affects the price and supply of commodities. Without subsidies, prices and supply go on its natural course. In addition, those who grow the corn and soy have more benefits than those who are not protected under