Saturday, February 16, 2008

Two Interesting Economist Articles

This week offered not just one, but two interesting Economist-articles. One is about how the growth of domestic demand is accelarating in China, which is very good for China, and which also increases its chance of successfully "decoupling" from the U.S. recession and instead re-structure its production to satisfying domestic rather than American demand.

The other is yet another demonstration of the insanity and irrationality of EU farm policy. The production caps that it imposes on milk production now means that the EU will lose market share as demand for dairy products increases from China and elsewhere, while EU consumers at the same time will have to pay a lot more for milk, cheese and other dairy products. A lose-lose policy in all aspects, in other words. EU seem to be an organization solely devoted to impoverishing the vast majority of Europeans.


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