This gives them an incentive to colonize areas where there are large amounts of raw material instead of just paying for the materials. After colonization, they now have the ability to take these materials back to the homeland to produce their product. Through imperialism, they cut out the middle man. Large consumer markets are also needed. Imperialism allowed industrialized countries to spread their influence to the weaker countries they conquered.
Corn, wheat, and cotton farmers responded by planting more, which only worsened the problem. The railroad industry, which had helped drive the American economy in prior
ENGLISH COLONIAL EXPANSION Sixteenth-century England was a tumultuous place. Because they could make more money from selling wool than from selling food, many of the nation’s landowners were converting farmers’ fields into pastures for sheep. This led to a food shortage; at the same time, many agricultural workers lost their jobs. The 16th century was also the age of mercantilism, an extremely competitive economic philosophy that pushed European nations to acquire as many colonies as they could. As a result, for the most part, the English colonies in North America were business ventures.
This act gave farmers subsidies for voluntarily reducing there crops sizes and spacing there planting times. The National Recovery Administration (NRA) was used to revive the industries by raising the workers wages but decreasing the hours worked. This cut all excess production so they would be a greater demand. Even though this act was ruled unconstitutional, it had many lasting affects on America. The Tennessee Valley Authority (TVA) was a very inspirational act that led to the emphasis of using the rivers resources for common gain.
On the other hand, the growth in population compared with national output shows less production per head, and therefore less efficient production. His policies did little for agriculture considering 80% of the population were rural peasants. It is thought he focused too much on heavy industry, neglecting others like light engineering. Finally, Russia became overly dependent on foreign loans (never good if a financial crisis were to occur and foreign loans have to be repaid). Tariffs making goods scarce and heavy taxation meant prices for Russian consumers increased, whilst their wages stayed low.
Due to big businesses like one of Carnegie’s, small companies which were less profitable were ruined, this resulted in the economy benefiting from monopolies. This explains how the prices of good decreased and pushed the domestic market to consume more. However there are also many factors suggesting that it was not due to the rise of big businesses. One of them being the development in agriculture across the Great Plains. This was made by the inventions such as barbed wire which protected the crops and animals leading to an increase in production in the US ‘break
During the period between 1880 and 1900, agrarian discontent increased as a result of the rise of cities, deflation of the American money, and problems with railroads and freight shipping. Farmers also complained about unfair railroads policies towards shippers. Railroad companies discriminated, by charging bigger businesses lower priced shipping rates and charging individual shippers highly overpriced shipping rates. In the Octopus, by Frank Norris, the con of the practice is displayed as the main character, farmer Dyke, discovers that the shipping rate being charged will put him at a loss rather than profit. Congress believed that farmers were right and passed the Interstate Commerce Act, in order to regulate railroads and ensure fair rates to all people.
Industrialization was creating even more towns, increasing this problem. So in order to feed his industrial workforce Stalin needed to revolutionize agriculture. He achieved this through forced grain seizure and the prosecution of kulaks and forcing peasants to work together in ‘collectives’. By doing so he was able to secure extra grain to feed the growing urban population of workers and sell the surplus to gain foreign currencies for purchasing foreign machineries. Though collectivisation may have had short term boosts to the economy but the effects of collectivisation were disastrous.
There were economic factors that led to collectivisation. The autumn of 1926 saw a record grain harvests for the USSR, however, the harvests of 1927, 1928 and 1929 were all poorer due to the peasants keeping hold of the grain. This decrease in production forced the price of agricultural products up. Consequently, the standard of living amongst urban worked declined. The decrease in agricultural production also affected the soviet government.
The reasons for agrarian discontent in the late 19th century were derived from trusts and monopolies, railroad freight costs for transportation of produce, and the circulation of money. Arguably, some of their complaints were not valid. The agricultural depression at the time in question could not solely be blamed on the government. Come to think about it, it was simple economics that mostly brought the farmers down. They grew too much too fast during a time where it wasn’t as required.