From Henry A Wallace to a Modern Marxist! – Teachers.Net (Politics)

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From Henry A Wallace to a Modern Marxist!

by T.E.C. - Iowa

Jan 8, 2017

I am still going through the 1934 book "New Frontiers" by V. Pres. Wallace. In the book, Wallace tells us that a major problem of the Great Depression was some prices fell and others did not. If all prices did fall in a similar way, much of the misery would have been mitigated. However, what he describes is still true today.

Agricultural products are inelastic by nature (little surplus produces a large fall in price). However, the real problem from 1934 is still true today.

(Quote)

But low prices or high prices, he cannot let his 160 acres and his own labor be idle. He considers that producing something is better than producing nothing at all. The result is, for the country as a whole, the total acreage in harvested crops remains practically constant from season to season.

(End quote)

Wallace explains that farmers are still subjected to market forces, but corporations are not - and they are not today! Thus, in both the Great Depres...See More

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