New Deal Regulation and Revolution in American Farms
Sally Clarke introduces her article, "New Deal Regulation and the Revolution in American Farm Productivity," with a brief description of the generally accepted views on government regulation and its role in the American economy from 1900 to 1940. The author points out that a generally negative view is taken of regulation, as it has had many disastrous consequences. However, in the second paragraph she explains how, while there are definite concerns relating to the burden to taxpayers and commodity markets resulting from farm regulation, this same regulation in the 1930s made possible the acquisition of labor-saving machinery.
The thesis of Clarke's article relates to the reasons for which farmers who did not invest in labor-saving machinery during the 1920s did eventually do so during the 1930s. She demonstrates that the Commodity Credit Corporation and the Farm Credit Administration facilitated these investments through regulation. The thesis statement is:
argue that prior to the 1930s, financial barriers slowed the adoption of new technology. Regulation contributed directly to the revolution in farm productivity because New Deal policies mitigated these barriers.
The conclusion is three-fold. Firstly, in the case of farming it is found that regulation stimulated investments in labor-saving...
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