ECON 2200 Lecture 7: ECON lecture 7
16 Dec 2016
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Growing farm debt farmers became increasingly vulnerable to foreclosure when: output declined, or, price of specialty decreased. More reliant on transportation (railroads) for goods produced and goods consumed. However, rr rates were generally decreasing (in real terms) in the late-1800s (fig 15. 3). More lines were being built so the rate was lower. More vulnerable to price fluctuations: see research by robert mcguire (p. 274) Thus, it was difficult in the short run for farmers to compensate for decreases in the price of a specialty product: market forced and farmers (1864-1896 = tough years) (1896-1920 = golden era of. American farming there was income growth but it was fairly small: despite rising output, income growth was slow. (table 15. 3) Both real per capita (i. e. , per farm) income and real per farm worker income grew, but real income growth was typically less-than-1% per annually from 1864 to 1896: adverse (& worsening) terms of trade (table 15. 4)
