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| quote: | Originally posted by shanny
I agree, we should not get too deep into the ecoworld, but if we continue our conversation just slightly, it seems clear to me that guvernment subsidization would only work to a point.
It would inevitably lead to the labs of ecstasy makers who have guvernment connections (read friends)being subsidized while the true hard working ecstasy makers are left high and dry. |
Very True...but leaving it up to fair trade isn't very efficient either. The added cost of the ecstasy as a result of fair trade will not be efficiently allocated to the true hard working ecstasy makers. A lot of the excess cost will be filtered through the government, police, Asians and other people of authority who "run" the ecstasy ring.
Also, as a result of fair trade, suppliers will find other means of getting their ecstasy, as opposed to buying it directly from the fair trade drug makers.
They will be more inclined to buy inferior ecstasy tablets from other regions to lower their expenses and have higher returns. Therefore, the hard working and "good" ecstasy tables will be demanded less, creating less income to these workers and the non hard workers who have an inferior product will be more demanded.
Thus, fair trade of ecstasy will create an increase in inferior pills and cause the nice drug makers to have a lower income than what could be accomplished through direct subsidies from the government.
and that all of my University knowledge in the field of International Economics. I don't really feel like having to bring in tariffs, exchange rate or the relative price of ecstasy.
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"I'm not stoned...I'm just Asian!"
Last edited by exstasie on Mar-14-2007 at 09:13
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