I am finding this discussion (mostly) very interesting. This is a microcosm of the way global/local economies work. It is a very complex web of interactions, and not always easy to follow.
As an example, Washington State produces 68% of consumable the apples in the United States (60% of the overall crop), but 30% of
that crop goes overseas. During the 1990s downturn, however, exports nearly evaporated. That market is hard to recover from, and there is competition. As a result, Washington apple producers pulled out thousands of acres of orchards and converted them to grapes for wine.
How a Souring Apple Industry Ripened a Burgeoning Wine Region.
Now, Washington is the
second largest wine producer in the United States. Both of those transformations had tremendous impacts on local businesses and global markets. As I noted earlier, the dairy industry in the US is huge, but it, too, is facing transformation in a similar fashion.
It is simplistic, in the extreme, to suggest that "raising wages" is the solution to this problem. It is a
factor, yes, and a laudable goal. But, there are so many other factors that they swamp that consideration. As
checkerboard pointed out earlier, we have been subsidizing the dairy (and so many other) industries for a century, at least. Why would we do that? Well,
MOST dairy products are consumed locally. According to the U. S. Department of Agriculture, the average person drinks 18 gallons a year. (That's down from the 1970s when it was close to 30 gallons a year. Moreover, milk has competition, now - almond milk, for instance, has seen sales grow
250 percent over the past five years.) Milk has historically been seen as a "health food", and we want our population - especially the kids - to be healthy, and than means keeping dairy products available, and that means locally, and that means dairy farms. There are 145,530 "dairy workers" in America with an average salary of $22.00 an hour (but that includes even the executive salaries, which average nearly 5x the median) - the category includes everything from the milker to the bookkeeper to managers and salespeople, in the industry. $1/hour raise could mean $301 million in new wages, spread over the industry. Yes, that would boost the economy, but it would also impact profit margins, drive up the cost of milk (and consumer costs overall), and make imports more attractive. Every advantage for one person or another has an effect - ripple, butterfly or other.