The American diet? - By improving the farming techniques, the corn production increased. This lowered the price of food, so that people only spent about 16% to 17% of take-home pays in food. By extending the rich of agriculture and transforming the way to farm, food becomes more affordable and fieldworks become easier.
Grain stocks have dropped to a dangerously low level. The world food price Index has doubled in a decade. The ranks of the hungry are expanding. Political unrest is spreading. The world used to have more food than they needed.
Out of everything that changed agriculture, the increasing economic difficulty was arguably the most powerful. With so many farms, the amount of produce rose while the prices of produce fell, in some cases, like with Cotton, prices fell over ⅛ of the original price (Doc A). Because of the extremely low prices, as low as 10 cents in some places, some farmers did not make enough to survive and promptly went out of business. Even with groups like the the Farmer's Alliance defending smaller farmers by pooling together resources and money in
During World War 1, the demand of food was high. The US provided for not only their own soldiers, but also those of other nations, and even the civilians in the rampaged neighborhoods. The farmers had confidence and used the income from the government to buy more land and machinery on credit. Banks supported the farmers while the industry boomed. When the war came to an end, the demand dropped but the supply rose.
The farmers felt that they were paying more and more to take loans and borrow money, to buy farming necessities and to sell their crops. The prices that had for the crops was degrading dramatically.
This was the negative impact [...] the prices of agricultural products increased. This inflation of prices stayed high until the end other century when prices began to fall” (Kries, 2006). This was devastating for peasants and landlords. The economic turmoil challenged the already difficult lives of the Europeans and led to a continuous dismantling of the economy that existed through the 14th century. It
Food shortages started to form because most of the farmers started to use their land for cash crop only and stopped using it for food crop. Since India was flourishing greatly growing cotton in the fertile land and selling cotton, money lenders were using this opportunity to gain business as well.
This caused a deficiency in men, machinery, livestock, and restricted harvest which led to food shortages before, during, and after the
It was only beneficial for those producers. Due to this law, Aristocrat class draws up a plan to prevent this by raising taxes. If the taxes rose, it would cause food prices higher not only the producers, but to factory owners, too. For instance, factory owners would have to pay for produce and wages for their workers. Therefore, government would have to form some reforms to prevent the revolution for it.
One of the issues was, “At the same time, the index of of industrial prices was rising far more rapidly than that of the agricultural products, which was the heart of the Algerian economy” (Ruedy 115). Prices went up because there was less grains produced, due to the drought, many lower class people could not afford the grain casing their class to suffer starvation. There was also a flu epidemic and the death rates flew straight up causing the demand for grain to be higher due to the all the sick and starving people. Also, the harvest during this time period were the worst ever recorded in history. Another factor with the Grain crisis was the amount of grain production fluctuated providing some years with too much grain or too little, “It is worth noting that the native component of hard-wheat production, for instance, which fluctuated between four and six million quintals before the war, now ranged between two and five million quintals”(Ruedy 115).
There were very small amounts of food and most people had to search the streets for any little food they
If the government sets the price too high, many people would not have enough money to get to the places they need to go to such as school, work, and medical places. On top of that, many gas stations would go out of business because the demand for gas would be low so they are losing profit. However, if a lower set price issued then the demand for gas would increase causing long lines and a major shortage of gas. Gas stations would have to give out less amounts of gas and set limits of how much gas that people can get so it can be fair for everyone.
With the increase in minimum wage it will increase the price for simple consumer goods like bread and milk ("Seattle Wins 'Fight for $15,' but Low-Skill Workers Lose." A.7). Typically, simple consumer goods are run by grocery stores and convenience stores. Those stores usually do not pay their employees a little more than minimum wage, but not the $10.25 that people are wanting. If this does happen then the stores will cover the new expenses by raising the prices of their goods. Raising the minimum wage just increases inflation.
Hence, the resulting market failure encourages the government intervention through the price control mechanism although seemingly lead to welfare
1) Government may intervene in a market in order to try and restore economic efficiency. One of the ways the government intervention can help overcome market failure is through the introduction of a price floors and price ceilings. If prices are seen to be too high, price ceiling or a maximum price could be imposed on a market in order to moderate the price of the product. This policy is often used when there are concerns that consumers cannot afford an essential product, such as groceries. The effect of a maximum price could create a shortage as it could lead to demand exceeding supply for that particular good.
