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I think the point is that actually doubling income is a better way to increase income than trying to optimize the price of one product. What we do know is that
by dahfizz 7y ago
I think the point is that actually doubling income is a better way to increase income than trying to optimize the price of one product.
What we do know is that food is already very cheap in Africa. It's not obvious that food could get much cheaper, let alone the 300% price reduction that you give in your example.
On the other hand, we do know there are huge gains to be had when it comes to increasing income and economic activity in general. That's where our effort would be best spent.
- Mikeb85 7y agoThis is literally creating local jobs. A job equals more income than no job. So this is raising incomes. In addition, there's less capital leaving the country buying foreign produce. So the money that would be spent anyway creates a local job, and in return is again spent locally by a Ghanaian farmer, instead of spent in Europe by a Dutch farmer. This is literally a win all around. An economy is a system, you can't just one day create amazing jobs without an entire support system around them.
- rmason 7y agoIf they're importing a large amount of their food from Europe as the article states they very well can lower the cost by producing it locally. Even if they're less efficient than the Europeans in doing so.
- thrower123 7y agoI'm not sure they can, actually. The wheat fields of Kansas or the Ukraine are so vastly more productive than trying to grow crops in a tropical climate.
- phil21 7y agoPlus a lot of those fields of grain are subsidized during times of plenty for national security (and other) reasons.