CanyonAg77 said:
The post was specifically saying that food costs would soar because of limited illegal immigration to pick the crops. I simply pointed out that assertion was bullcrap
Farm labor costs are a small part of food costs
Speaking of bullcrap, let's talk about "corporate greed".
If Walmart corp wanted to gouge food prices, HEB corp would do a happy dance and then undercut Wally's prices. There's always someone willing to take a little less money
OR, and hear me out... using your hypothetical. Let's say Walmart increases prices by 15%. HEB doesn't do a happy dance and lower their prices, or even keep them the same. They likely also raise their prices by around 15% too, depending on their strategy. Hell, they might raise them by more than 15% because they are a premium shopping experience compared to Walmart. They have a slightly different clientele. They might be able to get away with an 18% increase instead of just the 15% Walmart did. Walmart's price increase is basically a license for HEB's increase.
See how you're still oversimplifying it? And giving too much benefit of the doubt to these corporations?
This is how tariffs on imports also gives license for domestic companies to artificially raise their prices, too.
Example: Korean Clothes Dryer currently costs $1,000. Domestic Dryer currently costs $1,100. Tariff causes the Korean dryer to increase to $1,250. The domestic dryer company will inevitably also raise their price to around $1,250 because why leave free money on the table? Domestic product is now more competitive with the foreign product,
but at artificially inflated prices for both.
See how this works for the end user/consumer?
Key takeaway here is, rising prices for a few things leads to rising prices for basically everything. They're all cross-justifying for each other.
"I think aggievaulter07 may be the first person on TexAgs to actually back his **** up. I'm astounded, a little confused, and possibly hungry. I need some time to think about what this means." -MW03