Friday, April 18, 2008

Change is Bad

Back in the old days, before the mass production of corn ethanol drove up the price of corn (an 80% increase in 2006 alone), advocates for economic development in third world countries loudly complained that US agricultural subsidies were hurting small farmers by pushing down global grain prices, depriving small farmers of their main source of income. Now that global grain prices are rising, those same advocates are shrieking that food prices are too high for consumers in poor countries.

As the price of housing was rising, the media highlighted the groaning of new home buyers as it became more and more difficult to become a home owner. Now that the price of housing is falling, we mainly hear about all those homeowners who wish they had never bought while the price was high, or about all those homeowners who have to scale back their retirement plans because they no longer are "feeling flush."

We just can't get it right, no matter if we raise the prices or lower them. Conclusion: Change is Bad.


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