In: Economics
3. Would a pro-free market economist argue that garlic farmers facing competition from garlic farmers outside the United States (those foreign farmers can use very inexpensive labor) should be 'helped out' by the United States government (perhaps the government could give them some money)? Why, why not?
3.
A pro-free market economist will not argue as well as never favor
the action of the government to help the farmers who are facing
competition from the farmers outside of the USA, because a pro-free
market economist wants market forces to take the control of the
market and these economists don’t want government intervention.
According to the pro-free market economist, it is the demand and
supply forces of the economy that will define that who will excel
in the market. A government action in the USA to help the farmer
will be unnecessary intervention to disturb the market based
economy.
If farmers face competition, then they should move up the value
chain to produce garlic based products that can be sold at higher
prices. Besides, the resources can be used to buy garlic at low
cost from the foreign countries and process to produce garlic based
products. Then, these products should be sold back to the foreign
countries as well as in the USA to earn profit. It happens without
the government intervention and market forces prevail. In a real
world example, it happens between USA and Mexico regarding the
tomato and tomato based products.