The farmers could not pay back their loan
The Great Depression that caused so much trouble in the world during the 1930s ended only with the boom caused by World War II. For American farmers however, the downturn began shortly after World War I ended, continuing mostly unabated for two decades. The response of Herbert Hoover government did not help with the problems of farmers and they even became worse.With the policy of Roosevelt appearing, the problems that farmers faced was getting solved.During the Great Depression, the farmers were facing many problems and crises; for example, the natural disaster, low prices, overproduction, and the restricted economy. The Stock Market crashed and the consequent drop in farm prices devastated rural America, and prices declined so they had to sell their farms to afford the daily costing. Previous royal 20s also caused overproduction, which also caused the decline of agricultural product prices. Not only was affected by the economy, the farmers were also influenced but the bad weather. The drought and resulting dust storm were the most visible problem, and they also experienced other problems including summer heat and winter cold at the same time. Besides, less demand of crops affected the income of farmers; therefore, many farmers could not pay back their loan and declared bankruptcy. It seems that the farmers need some help from the government; for example, it could help the farmers to sell their production, with the price improved at the same time, and also provide benefits to help them deal with the harsh weather.Herbert Hoover’s government gave a series of policies to solve the problems of farmers. They thought it would be better to let the market forces to solve the problem instead of help from the government. So they actually did not give any help to the farmers to solve their problems. Then, they found that problems were getting worse, so they set up the Federal Farm Board to buy farmers products to help them; however, this policy brought a negative effect because farmers increases their production, and the prices were even lower than before. Later on, they published “The Smoot-Hawley Tariff Act” which was about increasing the taxes of agricultural products to get more income, to protect the benefits of farmers, but at the same time other countries were exasperate by this action, and they also improve their import tax. The tariff did not bring any advantages to the farmers, with products could not sell overseas.The failure of response of Herbert Hoover promoted the appearance of the New Deal by Rosevelt which was available to help people with such problems. The New Deal inaugurated many new thoughts of solving a country’s economic problem. He allowed the market force to help solve problems of the farmers, with the economy still being controlled by the government; for example, the government intervened on production’s price to keep it steady.Economic subsidies were granted to farmers who had reduced their production. He also encouraged the farmers to cut large numbers of farmland and kill large numbers of livestock. Besides, the “Agricultural Adjustment Act” also helped the farmland to recover from the natural disaster. The New Deal by Rosevelt brought hope to the farmers and helped them solve most of their problems.
The problems with the farmers facing reflected many social problems to some extends. The reason why farmers suffered a lot was that the economy was contracting severely and inflation was rising, and the unemployment rates were high at the same time.But the government did not find an appropriate way to help the people, but the New Deal by Rosevelt created a new way to solve problems. To solve problems of the farmers, it is undeniably improving farm life and productivity. The government should offer help to against the environmental issues and help improve the agricultural production; besides, increase farmers’ income and provide them more work is another good way to solve problems.