Rural household expenditure in the United States : a statistical analysis of consumer behavior
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"Since the years of depression, many policy programs have been designed to improve the income of the farmer and the standard of living in the rural area. Yet many people in the farm sector and in the rural community are still faced with major economic and social problems. The economic problems seem to be inherited through the inelastic nature of the demand for agricultural commodities. The application of new technology increased both quality and quantity of the product, but did not add much towards improving the farmer's income relative to the income of urban people. The by-product of technology was rural unemployment created by the displacement of workers by machine. Many of the displaced farm workers and unsuccessful farmers migrated to non-farm areas, seeking a way of living other than farming. Lacking the skill required by other industries, most of these remained unemployed. This unemployment amplified the burden of rural poverty. The levels of education, health and recreational services in the rural area, though far better than in many other nations, still compare unfavorably with the urban sector. Much of this is due to the fact that most of the nation's poor are in agriculture [10]. Aid has long been given to the low income persons, through private or public agencies, to meet their needs of food, clothing, shelter and medical services. Government programs concerning the rural population such as the direct payments to the farmers, the social security benefits, food programs for the poor, etc., aim at raising the standard of living of these people, to compensate for the inadequacy of their incomes. Treasury payments to the farmers have been running over three billion each year [1]. Such policy programs which invest large amounts in the rural area require empirical research, including social science investigations, to evaluate the needs of this sector for aid. Quantitative analysis of rural household expenditures is useful to many research and policy problems, since most of the policy issues have a direct relation with income and expenditure."--Introduction.
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