johaneriksson.se

Johan Norberg observes:

In another eloquent and intelligent speech Barack Obama says that he wants Ghana – and the rest of Africa – to get rich by be exporting food.

Talk is cheap.

The 2008 $288 billion US Farm Bill that Obama supported is expensive.

Also, why should President Obama suggest food in particular, rather than the myriad of other goods Africans could specialize in? Indeed, why should they all go for the same thing? It is inherently difficult, perhaps impossible, to say in advance which products will be a success for a country. One of the main benefits of the free market is that nobody has to figure this out in advance. If allowed, industrious people will try things they believe in, and every now and then someone will strike upon something valueable, creating wealth for the many.

Obama’s farm bill is but one of the obstacles to this process, albeit a significant one.

—-

Andra intressanta bloggar om: politik, fattigdom, marknadsekonomi
Technorati Tags: politics, poverty, free market economics