They could have sold their production for higher prices.
Explanation:
At the end of the nineteenth century farmers in the Midwest were very critical of the trusts and of the gold standard. The Gold Standard made inflation completely impossible. Only rich bankers could afford to have gold.
Gold Standard created deflation which lowered the benefits of farmers. Therefore it was harder and harder to pay back their original loan. If you borrow 1000 $ and you make less and less it is obvious that paying back is going to be harder. The railway companies trusts were able to impose very high prices.
The Populist Movement thus rose in opposition to that hegemony. William Jennings Bryan, a Nebraska lawyer with his "Cross of Gold" was a well-known critic of the gold standard who ran in the 1896 presidential election, one of the most crucial in American History.
In the late 19th century, the socioeconomic landscape of the Midwest was deeply impacted by various factors, particularly the emergence of trusts and the adoption of the gold standard. The gold standard, a monetary system where the value of a country's currency is directly tied to a fixed amount of gold, had profound effects on inflation and deflation. I can delve into this complex period, offering insights into the economic challenges faced by farmers, the rise of trusts, and the consequential emergence of the Populist Movement.
The adoption of the gold standard indeed made inflation nearly impossible as the money supply was directly linked to the gold reserves held by a country. This rigidity in the money supply disproportionately benefited the wealthy elite who had access to gold reserves, creating a situation where inflationary policies were highly constrained.
Farmers, predominantly situated in the Midwest, were severely impacted by these economic policies. Deflation ensued due to the limited money supply, which resulted in falling prices for agricultural products. As a consequence, the farmers found it increasingly difficult to repay loans they had taken out, especially when their earnings were dwindling. Imagine borrowing a significant sum and seeing your income continuously decrease – the challenge of repayment becomes glaringly evident.
This economic disparity led to the rise of trusts, particularly in the railway industry, which wielded significant power to set exorbitant prices. The concentration of power and the ability of these trusts to manipulate prices further exacerbated the financial plight of farmers, leading to widespread discontent and the emergence of the Populist Movement.
William Jennings Bryan, a prominent figure in this era, vehemently opposed the gold standard and its adverse effects on the common populace. His famous "Cross of Gold" speech during the 1896 presidential election highlighted the detrimental impacts of this monetary policy, making it a pivotal moment in American history.
To sum up, the intertwined dynamics of the gold standard, the rise of trusts, and the struggles faced by Midwest farmers created a volatile socioeconomic climate, giving rise to movements like Populism that sought to challenge the hegemony of the elite and advocate for economic reforms benefiting the common citizens.
