ipl-logo

Drought In California's Negative Consequences

571 Words3 Pages

SHIFT IN AGGREGATE AGRICULTURAL SUPPLY IN CALIFORNIA DUE TO DRAUGHT AND ITS POTENTIAL CONSEQUENCES
Investopedia defines aggregate supply as "the total supply of goods and services produced within an economy at a given overall price level in a given time period”.
The Atlantic.com states that the state of California is the fifth supplier of food in the world. The majority of the almonds, artichokes, lemon, pistachios and tomatoes consumed in the United States, are grown in California. The state also grows spinach, broccoli, grapes, oranges, walnuts, apricots, dates, figs, olives, prunes, avocados, lemons, melons, peaches, plums and strawberries. Agriculture in the state consumes 41% of the water supply.
The ongoing drought in California is causing water shortages for farms .Bad weather has a negative effect on short run aggregate supply of produce, causing the aggregate supply curve to shift to the left, with a decrease of output and an increase in prices.
A negative shift in aggregate supply is called a supply shock. Supply shocks are events which alter the output of a certain good or service without affecting the productive capacity of the economy. The drought in California is a supply shock that temporarily decreased the crop output due to …show more content…

According to Keynesian theory, the government should intervene to prevent higher unemployment by increasing aggregate demand to counteract the effect of the drought. This can be achieved by increasing the money supply into the economy in order to shift the aggregate demand curve upwards to bring the economy back to its original state before the drought. The state and federal governments can infuse money into the economy by launching drip irrigation and water conservation programs and subsidies to switch to less water consuming crops. If successful, prices will fall and the output will eventually return to the point where it was before the drought period

Show More
Related

  • Summary Of Water Controversies Soil Over By Mat Wiser

    489 Words  | 2 Pages

    So many lands, farms, fields of fruits and vegetables are gone because of the drought. All this happened because of a shortage of water from once green and healthy crops to dead dry brittle crops that are abandoned by a drought. For example, we had to cut back on watering my lawn and it went from a green lawn to a dead lawn, because of cut backs. Mat Wiser said that, “ Water will become one of the defining limits to human development and a compound factor in human misery,”(2009 Wiser). If we don’t have water we will die faster without water than food, we can’t be greedy on something that we thrive and survive

    Read More

  • Sipping California Dry Summary

    685 Words  | 3 Pages

    This article touches base on one of numerous ongoing issues in California right now, drought. The author travels to a few of the various counties that are feeling this drought the greatest. Meanwhile, he also interviews a few farmers on the issues, to get their opinion on the drought. “Generally, farms established before 1914 get their water allotment before farms with lower-priority rights.” (Richtel, page 6).

    Read More

  • Analysis Of The Article California Drought: Governor Jerry Brown Issues Water Rules

    673 Words  | 3 Pages

    In the article “California Drought: Governor Jerry Brown Issues Water Rules” for the Cable News Network, Ray Sanchez explains how Governor Jerry Brown is taking drastic measures to reduce California’s water usage. To do that, he has established many rules and restrictions on the people of California, as well as its businesses and farms. Governor Brown states that this drought needs extraordinary actions, as it has shown in the Sierra Nevada Mountains which has lost snow and are now covered with dry and brown grass. I agree with Sanchez and Governor Brown about imposing these rules and restriction on the people of California because these restrictions are going to help guide California out of the drought or at least help maintain and not let this drought get any worse than it already is. I agree with the author because in the article he provides good support to show why these rules need to be enacted upon

    Read More

  • Econ211 Unit 3

    896 Words  | 4 Pages

    Keynesian economics suggests that increasing government spending and decreasing tax rates are the better ways of stimulating aggregate demand, and reducing spending and increasing taxes after the economic boom begins. For this case, the federal government will increase its spending up to the point where the inflation starts to rise while unemployment has decreased to lower levels. For the economic growth to be attained at a preferable rate, then the government should spend on public such construction of roads, incentives to producers and provision of essential services to producers for them to thrive. The expenditure will indirectly trigger the producers to produce thus leading to attainment of desired economic growth while keeping inflation at a low

    Read More

  • Federal Government's Duty In The Dust Bowl

    1059 Words  | 5 Pages

    The period was also characterized by cheap labor as many would work for small wages only to get funds that would help purchase food and clothing. To counteract the effects of the grand depression, the Federal government should have adopted policies to increase currency slow in the economy and reduce the rate of unemployment. To begin with, lowering interest rates would have increased the attractiveness of loans hence increasing borrowing from the public. The result is a rise in funds available for spending thereby farmers would have enough resources to undertake farming activities. Understandably, fed identified such, but did not lower interest rates to levels that could significantly influence levels of borrowing and attractiveness of loans.

    Read More

  • Drought: Why Farmers Are Fought In California

    231 Words  | 1 Pages

    California dry from all of its water people trying to sell or just moving anywhere else. The drought has been going on for many years and slowly California is running out of water. If the government of California does not do anything the people may start to attack farmer to get water or the government may go for the people. The farmers are using all the water and people are losing their water.

    Read More

  • California's Prominence

    529 Words  | 3 Pages

    Discuss the key factors which led to California 's prominence as the leading agricultural state. Background: California produces more than 200 different farm commodities. Most agricultural states economy, such as California’s, solely depend on a single crop. Examples of singles crop would be corn, tobacco, cotton, meat or dairy products.

    Read More

  • Nagging Helps California Save Water Analysis

    718 Words  | 3 Pages

    My current event article is from the New York Times and is titled, A Culture of Nagging Helps California Save Water. This article coincides closest with chapter one in our book, entitled, Environmental Problems, Their Causes, and Sustainability. I picked this article because I like the idea of a great number of people coming together to help our environment in a pretty small amount of time to keep the place they call home from danger. I also liked how it displayed our ability to want to be more environmentally friendly or helpful when faced with the fear of being scolded or ridiculed by our peers. California is a state in our country that over time has been plagued with periods of little precipitation throughout its history.

    Read More

  • Subsidence In California

    334 Words  | 2 Pages

    The cause of all this is the unregulated pumping of groundwater out of aquifers by California 's farmers in the Central Valley. As water is drawn out of these reservoirs, their structural integrity fails and they consequently collapse, causing the land above to sink. Once the aquifers collapse, their maximum capacity is reduced, so they cannot be fully refilled during wet periods. Less water will be stored and pumped, which is a major concern for drought years in the future.

    Read More

  • California In A Critical Drought

    557 Words  | 3 Pages

    Imagine living in a home where there is no water what so ever and can 't even use the restroom or take a nice shower ? California is in a critical drought and need to help and find ways to help as much As possible .Women ,Men , and children in a small town in California are receiving the worst of the drought and are having their most used privileges throughout the day revoked. This small town is going through difficult times and may be obsolete and be a abandoned town due to living conditions. These Men and Women and small children are all receiving this horrible time and can 't even have a nice shower when they want . Source #2 says “when it first went dry , we used to drive 45 minutes away to my daughter 's house to have a shower .

    Read More

  • The Importance Of Water In Southern California

    475 Words  | 2 Pages

    Due to a shortage of water in California, the governor has proposed a diversion system to move water from the Northern California to Southern California. As for this will probably help since there is more farming, and more climate changes in Northern California. This will make a big bad and good difference. First, it will be a bad situation because then the farmers will not have the water they need for their crops, animals, etc.

    Read More

  • Comparing The Output Gap: The Federal Government And The Federal Reserve Bank Of America

    1138 Words  | 5 Pages

    That below-potential performance may spur a central bank to adopt a monetary policy designed to stimulate economic growth—by lowering interest rates, for example, to boost demand and prevent inflation from falling below the central bank’s inflation rate target. Governments can also use fiscal policy to close the output gap. For example, fiscal policy that is expansionary and raises aggregate demand by increasing government spending or lowering taxes—can be used to close a negative output gap. By contrast, when there is a positive output gap, contractionary or “tight” fiscal policy is adopted to reduce demand and combat inflation through lower spending and/or higher taxes. There

    Read More

  • Drought In The Great Plains

    608 Words  | 3 Pages

    Great Plains Daily Locust Attack: As harvest time is coming close, many farmers are preparing for it, drying out wheat and preparing cattle to be transferred. Everything was going well for the farmers of the Great Plains, they might even have a good season. Then, a large dark cloud appeared, covering the sun, locusts. Some say you could hear them before you saw them, their loud screeches being heard. Something wrong was going to happen, we just didn’t know it yet.

    Read More

  • The Importance Of Drought In California

    386 Words  | 2 Pages

    As California continues to struggle with water conservation methods, the mayor of Los Angeles has launched a campaign with the name “save the drop.” In the website they have dedicated for this movement, they employ alerting language use in order to convey the sense of urgency to an audience. “The drought in California has been going on for 4 straight years. In January of 2014, the Governor proclaimed a State of Emergency and in April of 2015 issued an Executive Order asking California to reduce water consumption by 25%. Currently, 71% of the State is experiencing extreme drought conditions and many of the state’s water sources are depleted.”

    Read More

  • John Maynard Keynesian Economic Policies

    924 Words  | 4 Pages

    To add, Keynesian economics is often used to refer to the concept that economic slumps can be prevented or optimal economic performance can be achieved by triggering aggregate demand of an economy such as intervention policies from the government.

    Read More

More about Drought In California's Negative Consequences

Open Document