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How Does Tobacco Affect The Economy?

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My family, along with many other families all over North Carolina the the rural south

have relied on tobacco as their main source of income for generations. It is very common

to see tobacco grown in many fields all over North Carolina and is very critical to many local

economies. ( Lawrence E Wood ) Regardless of its health hazards, tobacco is crucial to the

economy and without it, a countries economy will collapse. Many jobs are created from

tobacco, both directly and indirectly. Even the government relies on tobacco and helps

support the government through all the taxes collected. Many countries get over 10% or

more of their revenues from tobacco. ( Kenneth E Warner ) Tobacco has provided an

economy for farmers since the discovery …show more content…

Tobacco is the most

valuable crop based per acre, and the 7th largest cash crop in the country. The US cigarette

consumption has also dropped 5.8% in 2012, which is not helping the tobacco industry.

After the federal price support was removed in 2004, tobacco prices have become more

competitive in the global markets. ( Robert Beach ) So that means that whatever the

companies want to pay for your tobacco, that's what they give you, there is no support

of price from the government. This has caused many farmers to exit the tobacco program

because of such cheap prices and many tobacco farmers lack alternatives to tobacco because

the equipment is made especially for tobacco. ( Fred Gale ) Tobacco has played a major role in

building the economy in North Carolina.

Tobacco cannot be forgotten or looked over. Besides its health hazards, tobacco helps

support the economy through taxes, both local and state. It provides many jobs to people

both farm and away from the farm, and has provide for many families for generations. Without

tobacco, North Carolina would not be the place that it is

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