The Problem of Abundance

The U.S. was harvesting the biggest crop in history. The wheat harvest would yield more than 1.2 billion bushels. Dusty trucks were rolling along the roads with corn which is expected to total a record-breaking 3.5 billion bushels (previous record: 3.2 billion in 1946). Man and nature had collaborated in a great triumph.

But what did the great abundance mean to the nation? What did it mean to high prices? If the law of supply & demand were allowed to work, prices would already be dropping, some farmers would be facing financial losses. No one wanted the farmers to lose money. So the law of supply & demand had been amended by the law which said that the Government would guarantee the farmer certain prices.

The bigger the crop, the bigger would be the Government subsidy. In the great harvest, some estimates were that the farm price support program would cost the taxpayer $1.5 billion. As for high prices, as far as anyone could see now, the consumer would have to go on paying them.

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