There is more supply than needed, we normally make so much we export huge quantities. How does restricted food exports increase prices domestically?
The comments about capitalism and price gouging and stuff are all fine and correct. But that would logically apply whether the exports were restricted or not. But they have to do something with all the food they were going to export or not. Sometimes they’ll just burn it or dump milk but they can probably sell, just at a lower price or pay more to ship it farther away. Now long term yes if these farmers go out of business then prices could increase if the supply shrinks but that doesn’t really apply to this year.
The problem with the reasoning I see here is that you lot are taking things you heard and applying them to this situation, but you just say capitalism and that’s the end of your argument. Supply and demand still affect prices, especially on a large scale and with commodity goods.
There is more supply than needed, we normally make so much we export huge quantities. How does restricted food exports increase prices domestically?
The comments about capitalism and price gouging and stuff are all fine and correct. But that would logically apply whether the exports were restricted or not. But they have to do something with all the food they were going to export or not. Sometimes they’ll just burn it or dump milk but they can probably sell, just at a lower price or pay more to ship it farther away. Now long term yes if these farmers go out of business then prices could increase if the supply shrinks but that doesn’t really apply to this year.
The problem with the reasoning I see here is that you lot are taking things you heard and applying them to this situation, but you just say capitalism and that’s the end of your argument. Supply and demand still affect prices, especially on a large scale and with commodity goods.