Thomas wrote:Foxfyre wrote:How did you conclude that I said that what applies to supply and demand in the wage market does not include the product market? I thought I was pretty specific that an increase in the cost of labor results in an increase in the cost of product. I am reasonably secure that I am quite correct about that.
You also said the rising price will not make people stop apple. This statement is sufficiently vague to be correct under some interpretations. But it seems to downplay that some apples will not be eaten, even though people are willing to buy it at a price at which other people are willing to grow, pick, and sell them.
Well, I believe I said people will not stop buying lettuce and oranges if the price rises a bit due to field workers receiving a better wage. Price rise all the time anyway due to various ways that crops are damaged from storms, early freezes, etc. and people keep buying the stuff anyway. I can't see how somewhat higher prices due to other factors would change people's purchasing habits either.
I pay $1 or more for a head of lettuce now. I would pay $1.25 or $1.50 for the same lettuce but I might not pay $2.00, at least until I got used to the idea of $2 lettuce. Even doubling the wages of the workers will not double the price of a head of lettuce though.
I believe people stop buying stuff they don't really need if the prices rise sufficiently. They don't stop buying the stuff they do need unless they actually cannot afford it.
Another factor is that if some people switch to other products due to higher practices, there will still be more people earning better paychecks and able to afford to buy more stuff, and that should more than offset any temporary downside due to reasonably higher prices.
In other words, exploiting illegal labor may or may not be unfair to the illegals as nobody forces them to work for it. It is certainly a negative when it artificially depresses wages for those who are working legal or makes it difficult for produce growers to hire legal workers. The downside of the law of supply and demand is that those affected by it are forced to live by it or they go out of business.
It's pretty tough to all of a sudden expect the produce growers, as a group, or any other group of employers, to start abiding by immigration laws that the government has been ignoring for three decades now. But put policies into effect that keep the playing field level for everybody, and I think we can correct most of the problems without being unfair to anybody. I personally am still looking for what policies would accomplish that.
A substantial majority of Americans are opposed to anything that would even look like amnesty at this time, but its impossible to say how much they would react at the polls if Congress is unresponsive to that. This is one of those weird situations in which the American Left is aligned mostly with the President and conservatives are mostly on the opposite side of the fence.