tag:blogger.com,1999:blog-4159906646513306121.post6111370457849505292..comments2023-11-19T20:38:50.237-08:00Comments on Economic Logic: About the food price crisisEconomic Logicianhttp://www.blogger.com/profile/10171296292101248614noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-4159906646513306121.post-48895591336999708742008-04-15T03:08:00.000-07:002008-04-15T03:08:00.000-07:00Someone is bound to say it, so I will say it first...Someone is bound to say it, so I will say it first... "Story of the second-best".Gabriel Mhttps://www.blogger.com/profile/18020403326536585795noreply@blogger.comtag:blogger.com,1999:blog-4159906646513306121.post-70782483718430805182008-04-15T01:18:00.000-07:002008-04-15T01:18:00.000-07:00Firstly, a lot of developing countries have heavil...Firstly, a lot of developing countries have heavily regulated economies anyway. In many cases it is not new regulation, but changes to existing regulation: they are not moving away from a free market, they are just tweaking how things work a bit.<BR/><BR/>Secondly, supplies are inelastic in the short term: it takes at least a cycle from planting to harvest for supplies to adjust. For someone who is hungry today, this is a problem that can be faced another day.<BR/><BR/>Thirdly, how would you implement higher tax and income support third world conditions? I can see no way of doing in - certainly not here in Sri Lanka, and,a s far as I know, conditions are no more favourable elsewhere.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4159906646513306121.post-76565142044927561502008-04-14T20:30:00.000-07:002008-04-14T20:30:00.000-07:00Has it ever happened that price controls or constr...Has it ever happened that price controls or constraints to trade have proven positive? I cannot think of any example.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4159906646513306121.post-16506778965130093242008-04-14T20:15:00.000-07:002008-04-14T20:15:00.000-07:00I agree such countries have trouble raising funds....I agree such countries have trouble raising funds. But capping prices and closing borders is going to be counterproductive. Yet, this seems to have been the first reaction.Economic Logicianhttps://www.blogger.com/profile/10171296292101248614noreply@blogger.comtag:blogger.com,1999:blog-4159906646513306121.post-35506922012069900622008-04-14T19:34:00.000-07:002008-04-14T19:34:00.000-07:00And how are these developing countries supposed to...And how are these developing countries supposed to provide income support? They are unable to raise any taxes to do so. All they can do is close borders and cap prices.Anonymousnoreply@blogger.com