Tuesday, October 30, 2012
Price Floors
I think that prices floors should be used in the economy for food goods like corn, tomatoes, etc. This should occur because it keeps these goods at a constant (if at the price floor) price/value. This is important because it there is a surplus of one of these goods one year, farmers won't be forced to quit farming because they can't sell their goods at a high enough price to keep their farms going. If this were to happen countless people would be affected in later years because there would be less farmers, thus less food and people would start to starve and food prices would sky rocket because of the shortages of food. Even though there would be surplus of these goods in the market, it is better to keep farmers farming and lose food, than to lose the source of those who make our food (and starve).
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