So... that was fun...

July 26, 2005

The law of the jungle is not always the best

Toyota is moving its plant from the south of the USA to Ontario, Canada.
Isn't it strange that they are moving to a more expensive place?

Well, read the article from Paul Krugman (click on the title of this post) and you will see that cutting taxes and hence cutting on programs for the good of all citizens (public transports, health care, education) is not necessarily a good idea in the long run.
The law of the junngle is simply not always the best thing.

But as always, it is the implementation of the system which tells.
A system where the government is in charge and where costs are shared by all the citizens in order to share the risks can be very efficient because centralized, but a complete waste if corruption settles in.
The law of the market can be efficient because firms always compete and better their products and productivity, but can end up paralized, unfair and dividing (the have vs have-not) when a monopoly emerges or corruption (yes, again :) ) settles in.

Labels: ,

0 Comments:

Post a Comment

<< Home