Summary
Representative Alexandria Ocasio-Cortez warned that Trump’s mass deportation policy could lead to labor shortages and higher grocery prices.
Experts say agriculture, construction, and healthcare will be hardest hit, with farm output losses estimated between $30 and $60 billion.
Deportations could cost the U.S. economy up to $88 billion annually.
AOC argued that immigrant labor is vital to economic stability, urging Congress to pursue immigration reform.
I’m not sure what your main point is here. I was responding to you grouping together a labor shortage and a demand shock as - from what it sounded like - a reason to expect high prices. But demand shocks lower prices on the consumer side of food production, as opposed to raising them, because the food at that point exists, and whoever has it needs to sell it, more desperately than they were before.
My main point is this is well beyond the supply/demand chart you get in Econ 101. That more applies to distributors and grocers than it does to farmers. In most places the farmers aren’t in control of the price. The distributors are. This is how you get things like Dairy Farmers disposing of literal tons of milk. It was more expensive to send it than they would have been paid for it. In other words the price dropped so low it wasn’t worth selling it.
Of course that has knock on effects. That farm doesn’t magically get more money next year so their operations are constrained. Grain is worse than Dairy because it can be siloed for literal years. That means the glut will take years to resolve. Years with low or no income for grain farmers.
Are you seeing the problem yet?
No, I’m still not really sure what you’re trying to say. Your original post was about the price to consumers.
And as for the relationship between farmers and distributors, that really depends on the specifics of the purchasing agreements they enter into.
Dude I’m not going to start repeating myself. You have the chain of events that causes higher consumer prices, you just don’t want to admit it’s likely unless the government steps in to prevent it.