Saturday, 15 December 2007

Carter on cotton

Johan Norberg comments on the economic understand (or rather the lack of) of ex-president Jimmy Carter. Carter understands that cotton subsidies in the US hurt cotton farmers in Africa (this bit is good) but still some how comes out in favour of subsidies! (not so good) Carter's reasoning is
"Cotton production costs 73 cents per pound in the United States and only 21 cents per pound in West Africa, so American farmers do need protection in the international marketplace."

Back to econ101, Mr President.

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