We’re told by economists that the California drought is no cause for concern to the nation. The agriculture industry isn’t being forced into additional cuts. Food prices will increase only slightly.
Stephen Levy, director and staff economist at the Center for Continuing Study of the California Economy in Palo Alto argues that the market will correct a water imbalance. The state can eventually draw from new sources — desalination plants, diversions from Canada, and Washington and Oregon, to name a couple states. Some state crops including cotton and alfalfa will likely be phased out.
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