Both of those giveaway programs reduced the number of paying customers. That, in turn, put further pressure on the farmers to reduce prices in order to sell the products that were not bought by government but had to be sold to us consumers directly. Eventually, of course, the economic reality of consumer demand and producer supply re-established itself in our still reasonably free economy. Their liabilities in debts were soon much higher than their assets in overpriced land and unreliable political promises for special treatment. They were bankrupt.
Farmers seem strangely unaware that they, too, are consumers.
And as consumers, they just can't pay the artificially inflated prices for products they themselves have to buy to stay in business. Labor Laws Decrease Productivity Similar economic consequences also come from labor laws that interfere with the market allocation and price of that particular factor of production. Those laws usually increase the cost of labor above the market price, or decrease the productivity of labor, or both. In turn, those uneconomic political decisions cause an increase in prices to all consumers of the products and services. They price themselves out of the market, especially the world market.