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Breaking news: Trump is saying he will not be deporting illegal immigrants who work on Farms and in Hotels.
Gavin Newsom is claiming it for a win for the violent riots that have taken over LA and other major cities.
This is a bit of a let down for Trump Supporters and anyone who wants to take America back from those who were not invited. Especially with Gavin Newsom rubbing it in the public's face. Especially with American Approval of deportation efforts have been increasing.
Trump's rationale appears to be:
Hotels/farms are low hanging fruit, it's easy to pick up illegal immigrants from these locations.
After swooping these groups first, then the only applicants to these positions (at the wages the farms and hotels are willing to pay) are the criminal illegal immigrants.
So focus on criminality first.
Does this mean that, once every last criminal is deported, he will then do sweeps of farms and hotels? Left ambiguous.
One problem is the effect of exploitable labor goes in one way. Over the past 2 decades, Landscaping businesses that employed high school students and ex cons went out of business because they couldn't compete against undocumented workers.
If one farm gets raided, and one farm growing similar things does not get raided for another year, then the first farm needs to hire more expensive people and raise prices while the second farm will still benefit from the lowered wages. The farm that got raided first goes out of business first, the second farm maybe gets to buy up the first farm, then when they are inevitably raided they still stay in business and make more money now.
It's not fair. It's not fair that the government has not enforced its own rules surrounding hiring employees uniformly across industries.
The fair thing would be to deport 100% of everyone deportable all at once. The shock of that will be destructive to every industry that is predominately illegal immigrants.
The next fair thing might be to deport 10% of employees in every business all together, then another 10% later, and so on until the bottom is reached.
Of course, the above two "fair" plans are ridiculous. We do not have the man-power to do it.
Any other fair ideas? Besides Trump's new plan of "Don't try to tackle this right now."
Farms are one of those things where you just can't get Americans to do it. You can pay well-above market rate, they won't do it. You can hire out of the parole office, they'll still quit knowing they stand a good chance of going to jail for it.
Like duh, Trump was never going to crack down on fruitpickers and no one really wanted him to.
That's not really what "market rate" means. It doesn't really come free-floating, without reference to a population of suppliers/potential suppliers. Yes, there is a MarketRate1, where the set of suppliers/potential suppliers includes everyone who can walk across the border. Yes, MarketRate1 < MarketRate2, where MarketRate2 is with reference to the set of suppliers/potential suppliers who are legally authorized to work in the United States. But if we just lived in World2, there would be no talk about paying "well-above market rate (MarketRate2)", because MarketRate2 would just be the clearing price in World2.
Supply curve slope upwards. Demand curves slope downwards. For there to be no non-zero equilibrium, the supply price at zero quantity supplied must be higher than the demand price at zero quantity demanded. This may be true for some goods (say, anti-matter-powered light bulbs), but it seems highly unlikely that it is the case for food.
It could be true for certain crops grown in the United States though.
Possibly so. One would need further analysis on things like labor/capital required on any particulars. For example, how much raw cocoa is farmed in the US? I think almost none. Is this due to the labor supply curve? I'm not sure. My hunch is that, in the absence of any importation, capital could be applied to make some amount of suitable growing conditions... but that it might take quite a bit of capital. If that capital were invested, what would the labor supply curve look like to work in such facilities? I don't know.
Whereas most of the food products that are the subject of the current discussion already have proven growing capacity with acceptable capital expenditures, and we're mostly discussing the labor supply curve, much more in isolation. It is in that setting that I discussed the relative supply/demand curves and the use of the term "market rate". I admit that my example was perhaps not the most apropos, as anti-matter-powered light bulbs probably also require significant capex... and TBH, that's probably the real limiting factor there. I'm not sure there's really a way to just apply labor (at some higher price) with relatively-existing capital stock to get some supply of anti-matter-powered light bulbs.
Aside from Puerto Rico and Hawaii, I'm pretty sure the climate is unsuitable for cocoa. It appears there is commercial cocoa production in Hawaii and Puerto Rico (also the Virgin Islands and Guam), and also some basically hobby growing in South Florida. I was talking about crops which are grown in the US now, though. Get rid of migrant labor and cereal grains aren't going anywhere, but a lot of fruit might become too expensive to grow in the US.
Thus the need for significant application of capital. :)
Possibly so. There are obviously multiple interacting legal regime possibilities. The current administration seems(seemed?) keen on shutting down both imported labor and imported goods, with the simplest model being two binary variables. Shut down imported labor and keep imported fruit, perhaps there is no intersection of domestic supply/demand curves. Shut down imported labor and also imported fruit, maybe markets clear at a higher price, maybe quantity supplied still goes to zero and people just have less heterogeneity in their access to goods, maybe black fruit markets develop. Keep imported labor and also imported fruit is the status quo. Keep imported labor and shut down imported fruit, and the effects are probably again specific-dependent, but if it's a good that is already produced in reasonable quantity domestically, my guess would be minor increases in price and decreases in quantity supplied (goods that aren't produced in reasonable quantities domestically already may suffer a similar fate as above). Each of them has a corresponding MarketRateX for the labor involved, except possibly in cases where there is no intersection for domestic producers.
I take no position as to which of these cases are more/less desirable. Those questions get more complicated and require agreed-upon value functions to compute. For an example of the complications, see my comment here:
Some people may value domestic production very highly for its own sake, and they'd be willing to trade off access to a wider variety of goods. I'm not going to have some knock-down argument to say someone is wrong if they have such a value and are willing to prefer a world where cocoa simply is not accessible (at the moment, with the current set of ideas/technologies for how to use capital to produce cocoa in US climates) to a world where it is imported. I mostly care that everyone is clear about how the curves/terms work.
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