But, one group that did not prosper during the was 1920’s the American farmer… Agricultural productivity and output were rising during the => prices for many commodities 1920’s falling; society needed fewer people to be farmers (each farm could feed more people); profits of farmers fell => steady increase in farm foreclosure rates Many, including President Herbert Hoover (in office from 3/1929 to 3/1932) were calling for increased tariffs to protect farmers from foreign competition Recall that economists are generally opposed to trade restrictions [94.1% agree that and import quotas “tariffs usually reduce the general welfare of society”] Recent (2002) study by the Federal Reserve Bank of Dallas, focusing on the costs to society of saving a job by imposing trade restrictions… Jobs Annual Cost Industry Saved per Job Saved Benzenoid Chemicals 216 $1,376,435 Softwood Lumber 605 $1,044,271 Sugar 2,261 $826,104 Dairy Products 2,378 $685,323 Machine Tools 1,556 $479,452 Canned Tuna 390 $257,640 Peanuts 397 $187,223 Footwear 3,702 $139,800 Women’s trade restrictions are not the most cost effective way to help …clearly, workers in these industries…
But, one group that did not prosper during the 1920’s was the American farmer… Agricultural productivity and output were rising during the 1920’s => prices for many commodities falling; society needed fewer people to be farmers (each farm could feed more people); profits of farmers fell => steady increase in farm foreclosure rates Many, including President Herbert Hoover (in office from 3/1929 to 3/1932) were calling for increased tariffs to protect farmers from foreign competition Recall that economists are generally opposed to trade restrictions [94.1% agree that “tariffs and import quotas usually reduce the general welfare of society”] Recent (2002) study by the Federal Reserve Bank of Dallas, focusing on the costs to society of saving a job by imposing trade restrictions… Jobs Annual Cost Industry Saved per Job Saved Benzenoid Chemicals 216 $1,376,435 Softwood Lumber 605 $1,044,271 Sugar 2,261 $826,104 Dairy Products 2,378 $685,323 Machine Tools 1,556 $479,452 Canned Tuna 390 $257,640 Peanuts 397 $187,223 Women’s Footwear 3,702 $139,800 …clearly, trade restrictions are not the most cost effective way to help workers in these industries…