[An Old Man]

More Cheerie News

Who Benefits from Competitive Devaluation and "Beggar Thy Neighbor"?

[Recovering Hermit]

I don’t know about beggaring, but certainly we’re all being buggered.

[throwback]

I'm confused. If you devalue the money, isn't that inflation since you're inflating prices? Isn't the lawn cutting example the opposite where you're deflating prices and inflating money. Anyway, all will be reconciled soon since the dollar supply is ballooning and Benny's buying all those T-bills.

[USFRIENDINVICTORIA]

The lawnmower man comparison isn't appropriate for “beggar thy neighbour” policies. If someone offers to do a job for a lower price — that's simply competition.

When governments use their powers to tax, coerce, or subsidize to favour domestic producers over foreign competitors; they are attempting to “better thy neighbour”. All sides lose, because there are real, dead-weight economic losses. Things look good at first — then, consumers, taxpayers and otherwise healthy, productive, and competitive businesses are hurt.

[Myrddin]

It's called competition. The Euroweenies don't like it. They enforce price controls and do everything possible to prevent competition. If the out of work guy is willing to mow lawns for $20 to keep food on his table, then the landscape guy charging $50 needs to adjust his rates or go out of business. He's charging more than the market is willing to pay or the available labor is willing to accept.

[Myrddin]

BTW, this is the same whine I hear from the union types around Idaho. They hate "right to work". They call Idaho "the slave wage state". It's a cheer leading routine they practice while standing together in the unemployment line while people who work for a reasonable price are performing productive work.