The Whole of this article offends me even if true; I possessing doubts as to the validity of Farmers killing themselves because of Agricultural prices. I had a Farmer Cousin who did commit Suicide, but only after the IRS was going to give him Prison time for some serious Tax evasion (We are not all pure of heart, even if good with God). I have watched Farmers face bad weather, Drought, Plants blights, Livestock losses, and also Mortgages requiring payment of more than $100k per year. They live in a World where everything which can go wrong, does. Farmers commit Suicide because of personal problems, they being too sensible to kill themselves over market prices; which they have watched descend on a regular basis. Farmers know it is all a question of Seasons, something akin to an abusive father; who shouldn’t be so violent, but loved anyway. Farmers will prevail, and will choose Death for something sensible–like bone cancer.
Don Boudreaux again gives Us access to his disbelief in the monopsony power of labor markets. The Argument is so ethereal, with evidence as ghostly transparent, that either Side can be argued with vigor. I happen to believe that employers divide their labor into absolutely Critical, highly Productive, and Advantageous. Bad economic times will see the dismissal first of the advantageous labor, followed by the highly Productive labor, all without hardly any danger to Critical labor; a factor of doing business. Most business managers hold to the belief that mundane Housekeeping and Cleaning duties are Critical; they immorally committed to the proposition that cleaning up after yourself is demeaning, a waste of their time, and a paid service to be maintained until bankruptcy. Can Anyone discern how the monopsony power of minimum wage labor might develop? It may be pretentious, but is also a intrinsic reward to business management. Minimum Wages are always paid and subscribed, though Economists always doubt that fact.
Anna Schwartz and I agree, though I do so with vast regret. There is no specific action which Ben Bernanke undertook in the financial crisis where he was not supported by the main of economists and the banking community. It is a sadness that the economic school of Thought which brought Us the financial crisis remains the determinant of economic policy. We are in the midst of great Change, without alteration of the leadership cadre. New ideas still don’t extend beyond a rehash of older proposals, which often had proven fruitless with their first expression. What We have accomplished is an increase in American debt, alongside a loss of American Consumption power. Stimulus effects no Shock with little Buying, because of the Credit over-extension; the true economic Shock in the economy. We need to turn it around, and I don’t expect the current leadership can achieve the task. lgl