News for hackers. Stuff that matters.

A comment on The evidence behind putting money directly in the pockets of the poor. Parent comment

Re:The evidence behind putting money directly in the pockets... by renewiltord on Wednesday May 20, 2020 @02:26AM (#23243870)
Some things we might never have again. For instance you might not get sufficient utility out of strawberries at $30/kg. The market for people who do might be very small. Then the guy who wants to grow strawberries at cost X, the guy who wants to get strawberries at cost Y, and the guy who wants to be paid to pick strawberries at cost Z all want to indulge in the activity but because one part of the chain falls below a legislated minimum, an economically efficient action does not occur.

That doesn't mean it's bad that it doesn't occur. Just that if the equilibrium price has any link of the chain be legally unacceptable you might literally kill a market. There is no new equilibrium. There just isn't product.

[ Parent | on HN ]
Re:The evidence behind putting money directly in the pockets... by daddylonglegs on Wednesday May 20, 2020 @03:02AM (#23244088)
The fruit picker's wages aren't necessarily that large a component of the consumer price for the fruit. This economist argues that in the US: "For a typical household, a 40 percent increase in farm labor costs translates into a 3.6 percent increase in retail prices. If farm wages rose 40 percent, and this wage increase were passed on to consumers, average spending on fresh fruits and vegetables would rise about $15 a year..."

https://www.nytimes.com/roomfordebate/2011/08/17/could-farms...

[ Parent | on HN ]
Re:The evidence behind putting money directly in the pockets... by JumpCrisscross on Wednesday May 20, 2020 @02:41AM (#23243947)
That just means strawberries become a luxury fruit. That’s fine. Nobody needs strawberries. And it provides an incentive for automation.

I’m not sold on expansive UBI. (The EITC seems like a better middle step.) But I don’t buy this argument.

[ Parent | on HN ]
Re:The evidence behind putting money directly in the pockets... by MattGaiser on Wednesday May 20, 2020 @02:45AM (#23243970)
Yes, but then expand the strawberries issue to virtually all vegetables and fruit (except those harvested outside the country).

Making fruit and vegetables a luxury doesn't fit onto anyone's list of good public health outcomes.

[ Parent | on HN ]
Re:The evidence behind putting money directly in the pockets... by JumpCrisscross on Wednesday May 20, 2020 @02:51AM (#23244016)
> expand the strawberries issue to virtually all vegetables and fruit

Lots of produce production is already 90% automated. (Corn, for instance.) Strawberries are a particularly manually-intensive fruit.

[ Parent | on HN ]