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American Focus > Blog > Economy > Back to the farm? – Econlib
Economy

Back to the farm? – Econlib

Last updated: March 6, 2025 8:06 am
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Back to the farm? – Econlib
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From Agriculture to Urbanization: A Global Perspective

In the past, the majority of Americans were engaged in farming. However, by the late 20th century, a significant shift occurred as most farmers moved to urban areas for jobs in manufacturing and services. This trend is not unique to the United States, as China is currently undergoing a similar transformation with hundreds of millions of people migrating from rural to urban areas. This shift has resulted in a remarkable increase in Chinese productivity.

An article in the Financial Times highlighted the impact of deporting undocumented workers on the agricultural sector:

According to a survey conducted by the National Council of Agricultural Employers in 2020, only 337 US-born workers applied for the 97,691 seasonal agricultural jobs advertised between March and May of that year.

Opponents of immigration often argue that there is no labor shortage and that increasing wages would attract more American workers to these jobs. However, even a significant wage increase would only attract a small fraction of the required workforce. The reality is that the demand for agricultural workers far exceeds the available US-born labor pool.

While it is possible to raise wages to incentivize more Americans to work in agriculture, the resulting costs could make the production of labor-intensive crops economically unviable. This could lead to a shift from fruits and vegetables to less labor-intensive crops like wheat.

Some may propose raising food prices to cover higher labor costs, but this could lead to a reliance on imported produce, undermining the competitiveness of American farmers.

Implementing policies to encourage Americans to return to farming may not only be challenging but could also be counterproductive in the larger context of global economic trends. While the US debates the future of its agricultural workforce, China continues to urbanize millions of its population, driving economic growth and development.

See also  Is Synchrony Financial Stock Outperforming the Dow?

It is unlikely that the mass deportation of undocumented workers will materialize, as the economic implications and practical considerations are complex. Business owners and policymakers recognize the essential role of immigrant labor in sustaining key industries like agriculture and food processing.

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