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Drought In California's Negative Consequences

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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

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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).

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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

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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

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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

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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.

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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.

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HoweverBut, agriculture in Ccalifornia produces revenue for the state, creates jobs, and helps feed the nation. , Iif you take away that water, all that goes away. Lastly, I have spent a lot of time in Ooregon now, and tThe Columbia River, which is approximately four times larger than the Ccolorado, has water, most of which and most of it, flows straight out to the ocean. , Iif california really wanted to solve their water problem forever, they would stop spending $68 bBillion dollars on a light rail, and work out a deal with Ooregon to tap some water out of the

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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.”

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