4 ms·

If six times as many people raise chickens, won't the sale price of chickens go down and negate (part of) the effect of providing all the chickens in the first

If six times as many people raise chickens, won't the sale price of chickens go down and negate (part of) the effect of providing all the chickens in the first place? Shouldn't the number of people raising chickens have already reached a market equilibrium?

aurelienb 10y ago
Yes, more chicken mean cheaper eggs/chicken...
mattnewton 10y ago
Probably not because: 1) Farming chickens requires capital investment that might not be available to poorer families. Equilibrium can only be reached if the would-be-chicken-farmers have easy access to credit. 2) Chickens have inherent value; you can consume the eggs yourself as a substitute for other goods you were going to buy, and the meat as well.
shoover 10y ago
Perhaps. That is a good question that Bill should address in the analysis. If the price goes down then the farmers eat more eggs (and chickens, if they want), which is still a good outcome.
kuusisto 10y ago
That was a concern of mine too. It seems hard to guess how that might play out in practice though without a lot more information. For example, I wonder how localized the market effects might be. That is, how much do local populations sell chickens to one another, and how much does that affect market equilibrium.
ArkyBeagle 10y ago
Only in the universe with perfectly rational actors where markets always clear. As there is stiction in mechanical systems, markets may not converge on perfect equilibria.
zhte415 10y ago
Yes and no. Owning the chickens means owning capital, not being a waged consumer. Chickens also have inherent value, being able to lay eggs and have more chickens. Also many suggestions in the article about empowering women, which compounds the impact of capital ownership. Mainly marxist interpretation. Owning chickens means a surplus of chickens, and therefore there will be no more grain. Malthus. Price of grain/feed will change, but assuming chickens eat grain + anything, it might not change that much. Added benefits of immunized chickens. Unknown effect of price of chickens, perhaps deflationary pressure on price of other goods. Ricardo, perhaps. The network effects will be interesting. Every house with a couple of chickens is very worthy selfsustainment. A form of basic income.

aurelienb 10y ago

Yes, more chicken mean cheaper eggs/chicken...

mattnewton 10y ago

Probably not because: 1) Farming chickens requires capital investment that might not be available to poorer families. Equilibrium can only be reached if the would-be-chicken-farmers have easy access to credit. 2) Chickens have inherent value; you can consume the eggs yourself as a substitute for other goods you were going to buy, and the meat as well.

shoover 10y ago

Perhaps. That is a good question that Bill should address in the analysis. If the price goes down then the farmers eat more eggs (and chickens, if they want), which is still a good outcome.

kuusisto 10y ago

That was a concern of mine too. It seems hard to guess how that might play out in practice though without a lot more information. For example, I wonder how localized the market effects might be. That is, how much do local populations sell chickens to one another, and how much does that affect market equilibrium.

ArkyBeagle 10y ago

Only in the universe with perfectly rational actors where markets always clear. As there is stiction in mechanical systems, markets may not converge on perfect equilibria.

zhte415 10y ago

Yes and no. Owning the chickens means owning capital, not being a waged consumer. Chickens also have inherent value, being able to lay eggs and have more chickens. Also many suggestions in the article about empowering women, which compounds the impact of capital ownership. Mainly marxist interpretation. Owning chickens means a surplus of chickens, and therefore there will be no more grain. Malthus. Price of grain/feed will change, but assuming chickens eat grain + anything, it might not change that much. Added benefits of immunized chickens. Unknown effect of price of chickens, perhaps deflationary pressure on price of other goods. Ricardo, perhaps. The network effects will be interesting. Every house with a couple of chickens is very worthy selfsustainment. A form of basic income.