Price Controls, Subsidies, and the Risks of Good Intentions: Crash Course Economics #20





Price Controls, Subsidies, and the Risks of Good Intentions: Crash Course Economics #20


Just curious, what about a salary cap?
I farm 3,000 acres of crops and raise 4,000 head of cattle and I hate farm subsidies. I have neighbors that get hundreds of thousands every year from the government. Nothing wrong with crop insurance but it also should not be subsidized so that you are not inflating land prices
Rockin the ACDC belt
There is a notable exception minimum wage.


I disagree. Minimum wage forces businesses- that would naturally pay little due to the low skill nature of the job - to hire over skilled people for no other reason than "muh morality". And if the US enacts a $15 minimum wage. The majority of workers will be fired, hours will be cut and prices will rise. It also has the potential to cut teens out of the low skill work place almost entirely and further incentivize these businesses to further automat their business as much as possible to cut cost even further. Businesses survive on profit not morality points.
thanks guys
crash course has been helping me through my exams since the 1st semester. now im in 5th. thank youuuuu crash course!
Why do men on the internet have lisps and seem effeminate???
the takeaway: my ex is dead weight
IT WAS HER TURN! (Autistic screeching commences)
Craig Benzine was mentioned in this episode(;P). 00:43
Funny, maybe. Smart, i guess. BUT ATRACTTIVE? Adrian was lying when she said she could see us.
How about a floor BELOW the equilibrium price or a ceiling ABOVE the equilibrium price? What would happen then (theoretically)?
What about the farmers in developing countries?
Farmers make more than the average income? I grew up on a farm. My dad makes as much money as farmers did in the 70s. Thanks Reagan.
A price floor makes no sense. If we do not want to buy this thing at this price, then it makes no difference whether the government or the producers put that price.
Look:
If I want to buy chicken if its price was 4 $.
Then, if producers increase price to 5 $ I won't buy it. If the government suggests the price increasing to 5 $ I won't buy it either. What is the point?
Crash Course - double check where you have the DWL at the 3 minute mark. You can't have DWL where there wasn't consumer or producer surplus in the free market previously. You have the base of the triangle being where the shortage was and the tip of the triangle where the eq-price was. The triangle should be the reduction of CS and PS caused by the decreased Q.
What about producing more and destroying half of what you produce
This was done in farming in the Thirty's to keep produce prices up
The negative effect of agricultural subsidies only occur in rich countries. Here in the Philippines, the farming industry could almost die if the government won't subsidies them.
Am i the only one that pauses the videos at the into so i can read all the stuff they have on screen?
Actually, subsidies targeted only on low-income farmers would allow them to break into the market and create competition. They are great if the market is just getting started, like the mentioned solar panels and are great for breaking monopolies.


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Agro Space


Agricultural economics refers to economics as it relates to the "production, distribution and consumption of [agricultural] goods and services".

The word agriculture is a late Middle English adaptation of Latin agricultūra, from ager, "field", and cultūra, "cultivation" or "growing".