The sentence quoted below may be the dumbest thing ever written on Indymedia, and that's saying a lot.
"The consortium encourages the importation of products from the west to flood the Iraqi market, making Iraq dependent on outside business to the detriment of it’s own economy."
Iraqis have consumer choice! Oh the nightmare!
Whoever wrote this obviously hasn't the foggiest idea of even the most basic economics (In fact, I have never ever come across a leftist with even the most basic knowledge of economics) so let's explain a few things.
Every economy in the world (except possibly North Korea, and I'm sure you don't want Iraq to turn out like North Korea) is "dependent on outside business". Outside business is good. It means more competition, which in turn means higher wages and cheaper products. This is not to detriment of the local economy, it is to the benefit of it.
For example: An Iraqi company makes shoes. An outside company "floods the market" with shoes of an identical quality, but for half the price.
This means that more Iraqis can afford shoes, and that those who would have had to pay the higher price for shoes from the Iraqi company can buy something else as well. The Iraqi company either lowers prices to beat the outside company, or it can make something else to sell, eg hats.
So whereas before an Iraqi could only buy a pair of shoes with his hundred dinars, now he can buy a pair of shoes, AND a hat, AND a block of chocolate. Yummy, thanks multinationals!
Remember, people will buy and sell in their own self-interest. Let people buy what they want, and sell what they want, from and to whoever they want, and everyone gets a better deal.
Re: ANZ: Making a Killing in Iraq: GPJA Press Release
Date Edited: 16 Mar 2005 03:39:55 PM
"The consortium encourages the importation of products from the west to flood the Iraqi market, making Iraq dependent on outside business to the detriment of it’s own economy."
Iraqis have consumer choice! Oh the nightmare!
Whoever wrote this obviously hasn't the foggiest idea of even the most basic economics (In fact, I have never ever come across a leftist with even the most basic knowledge of economics) so let's explain a few things.
Every economy in the world (except possibly North Korea, and I'm sure you don't want Iraq to turn out like North Korea) is "dependent on outside business". Outside business is good. It means more competition, which in turn means higher wages and cheaper products. This is not to detriment of the local economy, it is to the benefit of it.
For example: An Iraqi company makes shoes. An outside company "floods the market" with shoes of an identical quality, but for half the price.
This means that more Iraqis can afford shoes, and that those who would have had to pay the higher price for shoes from the Iraqi company can buy something else as well. The Iraqi company either lowers prices to beat the outside company, or it can make something else to sell, eg hats.
So whereas before an Iraqi could only buy a pair of shoes with his hundred dinars, now he can buy a pair of shoes, AND a hat, AND a block of chocolate. Yummy, thanks multinationals!
Remember, people will buy and sell in their own self-interest. Let people buy what they want, and sell what they want, from and to whoever they want, and everyone gets a better deal.