Earlier quoted context omitted.
>>> due to lack of migrant workers to exploit What's your solution to this? Replacing migrant workers with locals by quadrupling the price of fruit? Or allowing more migrants in? FWIW my family worked as day laborers and it wasn't viewed as exploitation but as a chance to stay in America and become legal. It was better than where they came from. My grandfather ended up becoming a translator and negotiator for the uni…
> What's your solution to this? Replacing migrant workers with locals by quadrupling the price of fruit? How would it quadruple the price of fruit? Serious question. Prices would go up, but lets say a worker can pick, what 100 lbs of onions per hour. Onions cost between 30c-$1.50 a pound, so lets go low at say $0.50/pound. So in that hour, if they pick 100 pounds, that's around $50 of revenue. If they make, say $5/ho…
So our onion picker is making $20/hr. The stock boy in the market is still only making $5/hr, but his cost of food goes up by 30%. He's clearly being exploited - he makes less than an onion picker. He needs his pay quadrupled, too. So do the sorters, truckers, the mechanics, fuel attendants, market managers, every person along the way who touches that onion. All those increases get factored in so the final price of an onion will continue to rise, and then have to rise again, because no more value has been produced. When you put your thumb on one end of the scale, the inflation will ripple until that $20/hr will only buy the same number of onions that $5/hr would buy originally. Ultimately, after a period of economic contraction and devaluation of currency - and concomitant loss of personal savings in the bank, which will be soaked up by the financial sector, and those able to speculate against the dollar - everyone will be doing the same job they were doing before to be able to afford the same amount of onions.
I speak about this having lived through two periods of hyperinflation in Argentina. Fixing prices of goods or labor ends up destroying savings, and destroying people's lives. There needs to be a baseline - minimum wage - to prevent a race to the bottom. But when shortsighted people come into power promising to raise that faster than the rate of inflation, look out, because they're inextricably bound, and inflation will quickly catch up to it.