Comments on: Idols of the Market-Place http://www.groundviews.org/2008/07/09/idols-of-the-market-place/ groundviews is an award winning Sri Lankan citizen journalism initiative Thu, 04 Dec 2008 22:40:40 +0000 http://wordpress.org/?v=2.5.1 By: V http://www.groundviews.org/2008/07/09/idols-of-the-market-place/#comment-2985 V Thu, 10 Jul 2008 10:39:49 +0000 http://www.groundviews.org/?p=904#comment-2985 To Jack Point: A very valid point this: "Who are you benefiting? A few tens of thousands of farmers or several million consumers?" Also remember that we only have 20 million people in SL (not a big market), so the Toyota comparison is not really applicable to us (most of us can't afford cars anyway). We don''t have a big enough market to give birth to an infant industry. To Jack Point:
A very valid point this: “Who are you benefiting? A few tens of thousands of farmers or several million consumers?”

Also remember that we only have 20 million people in SL (not a big market), so the Toyota comparison is not really applicable to us (most of us can’t afford cars anyway). We don”t have a big enough market to give birth to an infant industry.

]]> By: V http://www.groundviews.org/2008/07/09/idols-of-the-market-place/#comment-2984 V Thu, 10 Jul 2008 10:29:34 +0000 http://www.groundviews.org/?p=904#comment-2984 Perhaps the writer could explore Denmark as a model: trade and exchange control are very free (it is considered the most free economy in the world), and yet they also have a heavy public sector, and provide very good social services (health care and education are free and of a very high quality). Their policy seems to be to allow wealth creation without hindrances/taxes or central planning by the govt, and then tax heavily to distribute the wealth. It seems to work there. Also, can the writer comment on this aspect: that consumers should be given the freedom to choose what they wish to spend their hard earned money on. From this perspective, a tax on an imported product is hindrance on our freedom. Also, what about the employment created by trading. Wal-Mart in the USA imports heavily from China, India, and elsewhere (they go to the cheapest supplier wherever they may be), and they employ millions of people (i think they are the largest employer in the world). It might be true to say that without their ability to source freely from low cost producing nations, this would not have happened. Overall point is, trading can also be a good provider of employment. Sri Lanka is well placed to be a shopping paradise for Asia (especially for our neighbour India) if we adopted a no-tax on imports policy. The rupee would also depreciate and help our exporters. Looking forward to the writer's comments. Perhaps the writer could explore Denmark as a model: trade and exchange control are very free (it is considered the most free economy in the world), and yet they also have a heavy public sector, and provide very good social services (health care and education are free and of a very high quality). Their policy seems to be to allow wealth creation without hindrances/taxes or central planning by the govt, and then tax heavily to distribute the wealth. It seems to work there.

Also, can the writer comment on this aspect: that consumers should be given the freedom to choose what they wish to spend their hard earned money on. From this perspective, a tax on an imported product is hindrance on our freedom.

Also, what about the employment created by trading. Wal-Mart in the USA imports heavily from China, India, and elsewhere (they go to the cheapest supplier wherever they may be), and they employ millions of people (i think they are the largest employer in the world). It might be true to say that without their ability to source freely from low cost producing nations, this would not have happened. Overall point is, trading can also be a good provider of employment. Sri Lanka is well placed to be a shopping paradise for Asia (especially for our neighbour India) if we adopted a no-tax on imports policy. The rupee would also depreciate and help our exporters. Looking forward to the writer’s comments.

]]> By: Jack Point http://www.groundviews.org/2008/07/09/idols-of-the-market-place/#comment-2980 Jack Point Thu, 10 Jul 2008 04:11:51 +0000 http://www.groundviews.org/?p=904#comment-2980 What you are stating is the 'infant industry' argument. This might be valid in the short term, but the government must be bold enough to dismantle the barriers when the industry grows, otherwise there is a danger that consumers will subsidise an inefficient producer (if the sector is in private hands) or worse, taxpayers will subsidise a state producer. Take the poultry industry in Sri Lanka. Why are consumers paying Rs.250+ a for a kilo of chicken when the product is available far cheaper, in India? Who are you benefiting? A few tens of thousands of farmers or several million consumers? What you are stating is the ‘infant industry’ argument. This might be valid in the short term, but the government must be bold enough to dismantle the barriers when the industry grows, otherwise there is a danger that consumers will subsidise an inefficient producer (if the sector is in private hands) or worse, taxpayers will subsidise a state producer.

Take the poultry industry in Sri Lanka. Why are consumers paying Rs.250+ a for a kilo of chicken when the product is available far cheaper, in India?

Who are you benefiting? A few tens of thousands of farmers or several million consumers?

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