Maíz, Corn, and Immigration
 I was talking to friend awhile back and he asked me about immigration. His question was along the lines of why people from Mexico come to the states looking for work, as opposed to staying in their own country and finding a job. Let me answer that as best I can. In Mexico, Maria needs to buy corn to grind into masa to make tortillas and any other number of incredible Mexican culinary delights. Increasingly over the last few years, the cost of buying that corn locally has climbed. It has not climbed because the growers are making more money, it has climbed because the raw costs associated with corn growing, things like water, seed, and fertilizer have all gone up. Now what is interesting in this is that the cost of buying corn in Mexico that is grown in the United States has actually gone down. Now the savvy folks out there are probably saying “Well of course Dave, we are more productive growers up here.” And you know what, we may be. But that is only half of the reason. The other half has to do with the fact that the US government subsidizes US corn growers, guaranteeing a non level playing field between us, and the Mexican farmer. In essence, what we do for our corn farmers is this. We guarantee them a stable price for their corn, and even sometimes pay them to not farm, just so we can manipulate the price of corn. There is no free market in the US corn industry. Because of this, international corn dealers can dump cheap US corn on the Mexican market, essentially creaming the local village farmer. So what does Juan do if he cannot farm corn profitably on his ancestral land anymore? He comes to the US to seek work in beef and chicken slaughterhouses where the animals we stuff full of good old US feed corn are processed. As I talked with my friend, he began to see why this was a problem. And then he asked me why Mexico just didn’t support and protect the price of corn in their country like the US does. Interesting isn’t it? Instead of becoming indignant that the US government is subsidizing prices in a supposed free market system, my friend asks why Mexico doesn’t do the same thing our government is doing. Do you know what the answer is? It is because when the Mexican government tried to impose tariffs on the importation of cheap US corn [syrup] to protect their sugar cane growers, we took them to court, charging illegal trade practices. To quote Sidney Weintraub, a political economist with the Center for Strategic and International Studies (CSIS) in Washington, DC., “The Mexicans never had a chance because their argument was based on fair play, and the US [argument was] on law." Now the sugar industry in Mexico is struggling to stay afloat, sending even more potential immigrants towards el norte looking for work. I wonder why Mexico just can’t get this system fixed. Labels: corn, Illegal Immigration, immigration, Maiz |
posted by Dave Miller at 4:00 PM
Comments on "Maíz, Corn, and Immigration"
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Beth said ... (10:14 PM) :
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Dave Miller said ... (10:46 PM) :
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Beth said ... (5:18 AM) :
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dmarks said ... (6:51 AM) :
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Dave Miller said ... (7:31 AM) :
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dmarks said ... (11:09 AM) :
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Lista said ... (11:43 AM) :
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Dave Miller said ... (4:12 PM) :
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Lista said ... (7:50 PM) :
post a commentIt the leftists that think that the government should intervene, that is why your friend wondered why Mexico doesn't do the same thing, but your friend should wonder instead why does OUR government get involved where it doesn't belong?
actually, my friend is a conservative card carrying GOP supporter...
Being a Republican does not mean one is conservative, take John McCain (please!) for example. Real conservatives never think government is an answer to most problems.
"The other half has to do with the fact that the US government subsidizes US corn growers, guaranteeing a non level playing field between us, and the Mexican farmer."
I agree that this is awful. But only if the "subsidies" are actual subsidies, and not take breaks. Many people erroneously include tax breaks (stealing less from someone) with subsidies (cash gifts). Is there a good source on whether or not these are actual subsidies?
"It is because when the Mexican government tried to impose tariffs on the importation of cheap US corn [syrup] to protect their sugar cane growers, we took them to court, charging illegal trade practices."
There's no excuse for tariffs. They are just another greedy tax. The Mexicans should have taken the government to court on this, though, for this tax which punished Mexican citizens for making their own decisions. There's no fair play when there are tariffs punishing average citizens. And that is what they, as taxes, do.
(I remember the silly tariffs on Japanese cars. The goal of which was to punish American consumers for making informed decisions and trying to buy significantly superior products based on these decisions).
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Beth: John McCain is conservative on most particulars, such as wanting to fight back against the terrorists, opposing abortion, and many many other issues.
Yes, he has been soft on the immigration at times. But isn't allowing people to work hard and improve their lives a more conservative position? Economically?
DMarks, at least in regards to McCain, Beth and many other GOP fans, are upset because McCain only came in at about 85-90% conservative according to most congressional ranking services.
This non 100% purity, for some reason makes him unfit to be part of the GOP and thus he, like his Dem counterparts becomes a RINO or DINO.
What the activists have failed to address is how, if you need that high purity, and you believe, as many conservatives do, that to compromise is to sell out, you actually get legislation passed.
On Mexico, I am sure the Mexican farmer would love to play on an even field, but the US will not allow it. Our stance is that since we have to pay higher wages here, [based on some artificial value] it is unfair to expect our farmers to compete on the world stage. Thus the subsidies, and that is what they are. Direct cash payments. Not tax breaks.
All Mexico was trying to do was protect their sugar cane industry, so Mexican farmers had work and stable jobs, or to put it another way, a reason to stay in Mexico.
It just seems disingenuous to me for people in the US to back policies [subsidies] that discourage and wipe out business in other countries, in this case Mexico, and then decry the lack of employment in Mexico that drives workers into our country.
Thanks for the clarification on the actual subsidies.
As for the sugar cane industry, they "protected" it by making Mexicans pay more for sugar. Greedy and punitive.
You know what, Dave? I'm still confused about the Math relating to Subsidies and the Supply and Demand Curve. If Subsidies are done to Bring the Supply Down and Keep the Price Up, than why is there still enough Supply in Order to Sell Corn to Mexico at Cheap Prices. If People are Paid to not Grow it, then there should not be Enough Corn Available in Order to do this.
The Math doesn't Work, Dave, and that is why I Continue to be Confused about this.
"The Mexicans never had a chance because their argument was based on fair play, and the US [argument was] on law."
Ok, so why don't the Mexicans Argue from the Law then, instead of from Fairness. And, also, if they were going to Imitate the US, it would be by Providing Subsidizes to their Farmers, not by Imposing Tariffs, for your Friends Question was why doesn't Mexico "do the same thing our government is doing", not why doesn't the Government Impose Tariffs.
Also, it Seems to me that the Tariffs were Necessary in Order to Bring the Price Up to a more Competitive Level, so why were they Illegal? I would Think that they should only be Illegal if they are Excessive, rather than Fair.
I agree with you, Dave, in Relation to the Value of Compromise and the Pointlessness of Searching for 100% Purity in a Republican Candidate.
"Our stance is that since we have to pay higher wages here, [based on some artificial value] it is unfair to expect our farmers to compete on the world stage. Thus the subsidies...,"
You see, I thought that Subsidies just had to do with Competition in Our Own Country, not with World Trade Issues.
As to Dmarks Statement, "they 'protected' it by making Mexicans pay more for sugar. Greedy and punitive.", Businesses are Protected by Keeping the Price Up. That's what Subsidies are all about, so it is not Surprising if that is what Tariffs are about as well.
Lista, first, you can reach me at dave at ailministry dot org
I did it that way to keep spammers away...
My ministry site is
www.ailministry.org
Okay, here is the supply and demand issue.
Normally, in a free market system, the price is set based on supply and demand.
For example, farmer bill has more corn than his buyers can buy, so he lowers the price to encourage buying.
But in a year when the weather is bad, he has less corn, and so do those around him, but the demand is about the same, because corn is such a staple in peoples diets.
But because he seen a drop in production, with stable demand, prices go up so that he can make the amount of money he must make to keep his farm in business.
You see, his costs are fairly stable. He plants the same seed, spends the same amount of time tending the crops, etc, but if a tornado wipes out 50% of his corn close to harvest, unless he can get a higher price, he's out of business.
Subsidies level that field here in the US. They ensure that no matter how bad things are, farmers will always get a price floor.
So..... if the corn business has a boom year, a year that would normally send prices down in the supply and demand world, the farmer sells his corn at the lowered price, yet the government makes up the difference between his selling price and the price he needs [it's negotiated] to keep his business open.
So, he can sell his corn at below market prices around the world, thereby putting world farmers out of business, yet still make the same profit, because the government is covering him...
Feel Free to Delete and Rewrite your Comment if you want to, for I have Written Down your Email Address and Ministry Site. Thanks.
Here's my Response...
Well then, the Government is not just Paying these Farmers to Not Grow a Crop. They are Allowing them to Sell the Crop and then Paying them Extra Money when the Price is too Low. This is Damaging to Mexico, but Paying them to not Grow a Crop Probably would not be.