Thai Rice & Why Government Intervention is Evil November 1, 2009
Posted by Avu in Data Response, Section 2.Tags: 2pac is alive, bieber, black people, economics, facebook, gdp, hdi, iphone, ipod, justin, make money, miley cyrus, pokemon, Russia, soulja boy, twitter
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Thailand has long been a staple for rice lovers worldwide with their unique and cherished Jasmine Rice. However, with a fresh harvest, supply far exceeds demand, leaving producers with a painful surplus and a hungering need to drop prices towards equilibrium. To add insult to injury, the government has oh so benevolently set a price floor to supposedly aid the farmers. Of course, the government’s inefficiency led to a high limit, preventing farmers to export their products in a competitive overseas market. The extent of the government’s flaws can be witnessed in the graph below.
The price floor prevents the price falling back to the equilibrium
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