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> Employees of local producers are great too, the theory I always hear is that people getting paid in an area stimulate more economic activity. So I mean you sh
by fennecfoxen 5y ago
> Employees of local producers are great too, the theory I always hear is that people getting paid in an area stimulate more economic activity. So I mean you should take that idea apart more as it is pretty much established wisdom.
The "established wisdom" you cite is a long-lived natural propaganda campaign. It begins with politicians, people who succeed or fail based mostly on their image, not on the quality of their governance. Why would they do the hard work seeking out the causes of prosperity, help organize that prosperity, and seek ways that collective action can make things better? That's a sucker's game. If you rip off the population at large — just a little bit at a time, mind you — then you gain political allies in the industry who benefits. Of course they'll market you as the champion of prosperity: you've made their success possible. It's not strictly cynical; it's quite easy to believe, if you're not the person paying for it, and motivated reasoning is strong. It's a win/win deal, because you ignore the people who actually pay for things. Welcome to public-choice theory. It likely won't ever change. Hooray!
It should be painfully obvious to anyone who thinks about the facts of the matter that having access to nearly-free clothes — not the obnoxious piles of waste or anything, just the bales of clothing the article laments being imported into South Africa — having access is strictly better than not having this access. These people, after all, are always free to buy different clothes. It's not hard: Americans have access to similar, and can buy stupidly cheap clothes at an American thrift store, but in practice, they mostly don't even look at such an establishment. So why don't the people of South Africa buy locally made clothes right now? Because given their income, they much prefer the nearly-free clothes.
Common sense does work here! As an individual, you don't become prosperous by looking for ways to do things that are more expensive. As a society, the same principle applies. Yes, yes, someone will conjure many promises: if everyone just spends more money, we'll have more money! But you know, if you spend less money on clothes you can spend more money on literally anything else which you'd rather have. It's like a perpetual motion machine: the energy does actually come from somewhere, you just might not be looking at it. The prosperity they propose society will gain from protecting garment industry is stolen from everyone who buys clothes, and everything that they would have bought instead, and you lose some of the prosperity in the process, because you expend effort and capital and materials.
- unionpivo 5y agosure. but at the same time, this is true of pretty much anything in Africa, due to their poor infrastructure. You have to have local firms (or self employed) making something, and selling that something, so that they can employ local people, and so on. But it's often cheaper to build/make/farm that something in EU/Asia/Americas and ship it to Africa. Something has to break this cycle.
- fennecfoxen 5y ago> Something has to break this cycle. This "something" is unlikely to be protectionism.
- bryanrasmussen 5y agoWell, at some point people have to trust someone other than themselves to tell them how complicated things work because there is just too much complexity and layering of knowledge in our modern world for one person to be an expert in everything. So, I have accepted this natural propaganda as you call it because it seemed to be said by lots of people who were experts, I mean it's not just like I heard it from Milton Friedman and went with that. It's a pretty wide range of people I've heard this from. If it is a propaganda campaign it is a wide ranging one with lots of people involved some of whom you would think would have had the clout to make different arguments but didn't. In the many times I've encountered the argument there tends to be statistics and graphs involved, sure, not in my specialty but at any rate things looked reasonable on the surface and so over the years I accepted an argument that did not necessarily follow common sense when first encountered. Your argument against it sounds totally reasonable and sensible. But you do not bring any evidence to bear, just your argument. Admittedly the argument is based on logic, but sometimes the things that seem logically sound can be shown to not work because of some deeper underlying logic to it. Is this your own idea, or did you encounter it somewhere and think that sounds much more reasonable than the other stuff I've been told? If so can you give me a guide to where I can read about the idea myself. What leads you to call the opposing argument propaganda, is there any research you can point to about this?