Some more thoughts on free market economics and trade barriers between countries. Are export-based economies the best for every country on earth?
How is it that countries in the tropics are so poor compared to the Northern countries?
If you think a man is rich if his needs are easily met than the man in the tropics has an advantage over the Northerners. Since there are is no cold weather his shelter can be a hut made of bananna leaves. A pair of short pants can suffice as his clothing. In the tropics food grows quickly and easily.
Corn farmers in Mecico have been driven out of business by cheap American corn. Mexican coffee farmers can’t make a profit due to imported Vietnamese coffee. But American free market ecomists say this is all for the best. However when it comes to softwood lumber imported into America which hurts the market for Amerow can producers they call foul saying Canada is dumping their wood on the American market.
The Mexican consumer does not benefit from the Mexican farmers suffering – consumer prices that Mecicans pay for corn and coffee does not reflect the lower wholesale costs. The only one who benefits is the middleman who makes more profit.
Guratemala is one of the world’s largest producers of banannas. The workers labour in the fields to grow banannas for the Guatemaln fruit company. They get paid in a currency controlled by the fruit company and are then free to buy their essentials like imported food and water from the company store. The society is completely controlled by status in the company.
It would be better for
