Between 1917 and 1921 in Russia, Bolsheviks took from farmers all food in excess
ID: 1105367 • Letter: B
Question
Between 1917 and 1921 in Russia, Bolsheviks took from farmers all food in excess of the amounts needed for their own subsistence. The surplus was given to soldiers and urban dwellers.
In Japan during World War II, the government set a quota that rice farmers were required to sell at a very low price. Production above the quota amount could be sold at market prices.
What were the effects of the two different approaches on the amount of land planted and the harvest quantities? Please discuss the incentives faced by farmers in both cases
Explanation / Answer
Considering the effect of Bolsheviks decision to give the excess amount to soldiers and urban dwellers, the farmers will reduce the amount of the harvest as the excess is taken by the government and they are unable to sell their produce in the market. Thus, the incentive to produce more is reduced and thus the amount of land planted will be reduced and the harvest quantities will also decline in the market as profits of the farmers will decline.
On the other hand, in Japan government set a quota that rice farmers were required to sell at a very low price and production above the quota could be sold at market price. This will give the incentive to farmers to produce more as the excess amount could be sold in the market at higher price which will increase profits of the farmers and induce them to produce more.Thus, there will be an increase in the amount of land planted and the harvest quantities.
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