- Joined
- Sep 13, 2012
- Messages
- 18,233
- Reaction score
- 15,861
- Location
- veni, vidi, volo - now back in NC
- Gender
- Male
- Political Leaning
- Undisclosed
That's because the farms owners have no incentive to raise wages, as those losses won't affect them...they have insurance against it, and they're heavily subsidized.
Although I do not like farm subsidies, it makes economic sense given the global market for food products. If we think farm labor is cheap here, then we should look at how farmers have to compete in a global market that includes labor markets that the yearly cost of a farm laborer is comparable to the monthly cost of US farm labor, even an illegal immigrant farm laborer in the US, as well as socialist farming schemes like those in Asia and parts of Europe.
Crop insurance by the USDA, on the surface, makes sense to me for economic reasons as well because of the overarching cost increases that would hit food stuffs if crop insurance were privatized. One thing many people don't know, is that you can only get crop insurance on certain crops, and only in certain quantities. It's not a free-for-all farmer bailout.