D.A.C.A. Program Ending

As we have all heard by now, the D.A.C.A. program will be coming to end as an executive order came from the White House.  The question remains, what impact will this have on the U.S. economy?  In short it will leave the country with 800,000 less workers in the workforce.  Most of these workers work in an agriculture job.  With a shortage of workers for the agriculture industry, you can almost be sure that wages for these jobs will increase by looking at a supply and demand curve.  With the supply of labor getting smaller, the demand curve for labor would stay at the same quantity of workers demanded.  This causes the equilibrium of wages to increase.  The problem being here that some farms that are not as large in geographic size and do not have this extra money on hand to pay workers even more.  The next logical thing that would happen is that farms would turn to more capital means of production and use technology to harvest the crops that farmers depend on to sell and survive.  The problem again being a lack of money.  Farm equipment like, combines, tractors, and plows can cost upwards of $70,000.  To get the work done like before the farmers would have a choice to make, employ more people, invest in more capital means of production, or a third option would is to downsize to avoid the costs of the previous options.  This means less money flowing into the farmers pockets which would mean consumption of farmers wold decrease.  Crop output could also suffer if some farmers decide to take the downsizing route of operating.  Overall there will be less money flowing in the economy because of this executive order.

Link: http://money.cnn.com/2017/09/05/news/economy/daca-us-economy/index.html