thegreekdog wrote:Timminz wrote:BigBallinStalin wrote:This is great!  By making labor more expensive for the smaller farms, more of them will be unable to compete.  Then the larger businesses in the agricultural sector can buy them up!    Anyone who opposes this is in support of child labor!  EVIL!! EVILL!!!  Isn't it so amusing how our morality has been flipped?
Crony capitalism is like this fantastic magic show, where bureaucrats make sure that the workers are protected, and that the children are saved from the evil capitalists.  Never mind that some businesses (small farms) will go under, unemployment will slightly increase, real income for these families will significantly decrease, etc.  
But the large agribusinesses earn a bigger margin than family farms due to economies of scale, so this shift will cause an overall increase in GDP, which is good for everyone, since it is an increase in average income.
Yay economics!
 
Not to mention that agricultural products manufactured on the big farms are cheaper for consumers.  And don't we all want cheaper products (at the expense of everything else)?
 
Why Timminz is WRONG:  (In your face, Timminz!!!!)
viewtopic.php?f=8&t=169761&start=30#p3710099Regarding your point, yes, the consumer welfare 
of only those consumers who purchase products by large agribusinesses might get an increase in their real income due to the assumed lower prices from the expansion of those big agribusinesses. 
Nevertheless, a firm can only expand so much until its internal transaction costs become higher than external transaction costs.  In other words, an expansion of a firm doesn't always lead to lower prices and increased input.  It depends on the firm's inner transaction costs and whether or not it would be cheaper to outsource these transactions--or if the market with its smaller firms could produce at a lower internal transaction cost, thus a lower price, thereby out-competing the larger firm. 
You're assuming constant returns to scale (i.e. increased inputs will always lead to increased outputs).  This isn't always the case because of diminishing marginal utility.  In other words, if you have a room with 5 computers and 5 tax assistants, it doesn't follow that if you double the computers, tax assistants, and room size, you'll get double the output.  It depends on the means of doubling and the following internal transaction costs.  You probably need to a hire a manager because without him your workload would probably increase, thus hampering your productivity, thereby decreasing your marginal revenue product.  and yada yada yada.  In short, it just depends.
However, the consumers who purchase from local farms would face higher prices, thus realize a decrease in their real income--as the large businesses took over the local farms on the margin.  What about those consumers and their decreased welfare?