this post was submitted on 16 Oct 2025
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Minimum wage is an example of a price floor. We already have price floors on a range of ag commodities. What happens in practice is that the government will limit imports and agree to buy those products at the price floor if the market price ends up being lower. This is one reason why we saw massive milk dumping during the pandemic. Instead of culling cows during a market shock, price floors kept supply up when demand was down. If this happens we will probably see food waste like we’ve never seen before while food gets more expensive.
:Steinbeck: