U.S. beef prices have been stubbornly high for a variety of reasons, including drought and reduced imports from Mexico due to a flesh-eating pest in cattle herds there.
U.S. beef prices have been stubbornly high for a variety of reasons, including drought and reduced imports from Mexico due to a flesh-eating pest in cattle herds there.
Prices would go down due to an economic principle known as supply and demand
The basic idea is in a market where the demand for an item (beef in this case) outstrips the supply, the price goes up until the demand is equal to the supply. By importing Argentinian beef, you’re increasing the available supply in the market. Thus the price will decrease until supply and demand are again equal
No, it isn’t supply and demand. The supply is the same. They aren’t producing more beef that didn’t exist before last week. You could always buy Argentinian beef in the US, but it wasn’t imported more because of the price. So if you want to say that the localized supply increased, then it is because it was purchased by the government and either given away for free or heavily subsidized in price.
Subsidies is why this will make beef less expensive. Except now the subsidies are going to Argentinians instead of American farmers.
That would only be true if beef imported from Argentina was cheaper than beef produced in US, right? And if imported beef was cheaper it would already be in US, right? Unless there are some health based restrictions that prevent importing beef and the government is going to remove those?