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NPP, Neo-Colonialism And Corrupt Leadership In High Places!!

Comment: Bogus Economics!

2007-03-05 06:23:47
Comment to:

Your posting reads like conventional economics textbook.
Certain vital industries must be protected from foreign competition.The Europe and Americans do that. Why can't we?
Another misuderstanding you have relates to the cost of production, which I presume you culled from standard economics textbook. You wrote:"If imports from America or China become expensive and unavailable, the costs of production in some of our important industries will rise. Facing rising costs of production, our industries will use old and inefficient technologies and produce goods that few of us want. Our exports will then fall dramatically and Kuffour will have to subside these failing local industries in order to stay running". What is your empirical evidence for making this assertion? Do you believe that the costs of production of our local industry are dependent on foreign import? Let's take the case of the poultry industry for an illustration. Do you think that chicken and eggs are cheaper in Ghana because Ghanaians are importing many poultry products? Do you know of any Western country that imports poultry products? Do the Asian Tigers import poultry products? Why? The production costs of any industry depend empirically and critically on two things: the costs of inputs-- raw materials and labour and other operational costs. Given our internal resources, Ghana must be able to produce poultry products cheaper than those we import. That is, our domestic costs of poultry production must be cheaper than our foreign producers.Since this is not the case, there are certain internal political-economic factors plaguing the poultry industry. You are always fond of analyzing our economic problems without paying any attention to the political. The political matters in most cases than the economic. That is, political economy must be the most effective analylitical tool that to use to examine our situation. However, conventional economics has stripped itself of the political and it has structured the discipline in logical, mathematical ways. But beneath the fascade is that valuation precedes rationality; One can only be rational within the limits set by values. You seem to be one of the high apostles of the cult of efficiency. Don't forget that the lure of efficiency leads to the fallacy of qualification. Some costs and some ends are non-quantifiable. That is why true accounting is always incomplete.And that is why conventional economics taught at the university level is a gross misrepresentation of realities-- an ideology.Let me conclude by saying that Bannerman's article is a critical evaluation of our economic stupidity.Bravo Bannerman, need more of those!

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03-04 15:29
Bogus Economics!
03-05 06:23