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Antiquated Ideas

It is not only the Federal Government that pursues fallacious economic ideas.  It happens at the local level as well.  Witness Florida where a policy called "backyard economics" is being advocated.  This policy suggests that buying local, from Florida businesses, is better for the Florida economy than buying elsewhere.  This ignores the fact that each consumer who pays more for local goods has less to spend on other goods in the local economy.  Buying some goods for a lower price elsewhere leaves more of the household budget for local purchases.  On the other hand, supporting local merchants who charge higher prices subsidizes local inefficiencies;  presumably some businesses should become more efficient or shut down because their goods can be produced more economically elsewhere.  The ultimate result of buying locally would be for each household to produce as much of their own needs themselves, but that went out with the advent of the "division of labor" (thank you Adam Smith).  The bottom line is that "backyard economics" is just so many antiquated ideas and Floridians (as well as the rest of us) deserve better.

Comments

( 2 comments — Leave a comment )
john_j_enright
Apr. 11th, 2009 02:37 pm (UTC)
If it weren't for that darned Interstate Commerce Clause, all the states could put up Tariffs, and achieve local Mercantilism!
jwhend49
Apr. 12th, 2009 09:39 am (UTC)
That's the direction they're headed - wrong-headed!
( 2 comments — Leave a comment )

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