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I just wanted to mention this article from the Wall Street Journal. For me talking about the impact on food really makes economics come alive so this article was really relevant. The pecan growers also seem to be a real close illustration of a free market.
Personally I only like pecan in baked goods, I am not a big fan of them as eating nuts. How does this impact you? Would you ever pay about $7.50 to make a pie? I wouldn't because chances are I would burn it. :) What do you think of China's entrance into the pecan industry? Does it mirror any other industries we can think of?
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Interesting article, I don't see this as a problem. China's rising middle class and patterns of social stratification are making American goods more highly demanded. Isn't this what we want? I think this is why American Chains (Walmart?) are doing exceptionally well in China. The US has experienced something like 400-500% growth in exports to China over the last ten years, but the trade deficit between the two countries is still ~200 billion in favor of China.
ReplyDeleteCan we talk about something other than China?
Baking aside (I'm a grea cook) China want's our nuts. Pecans are a fad now. A couple of years back there was the banana diet in Japan.
ReplyDeleteChina (and other East Asian countries) are not just demanding goods from the US. There is a ton of illegal fishing of the coast of the Galapagos to satisfy regional cravings for sea cucumbers, and other fishies, that is having drastic impacts on the environment.
The US wants to decrease it's trade deficit, this is a good way.
I agree with Jared, as much as we all love China I feel like we could try to diversify the articles a bit more. I think this article does highlight how American goods are in higher demand in China. I can't say I am surprised that the Chinese are going directly to growers. It's a free market isn't it? This is generally how it works and I am not surprised the middle men are getting weeded out. Like the quote from the pecan expert says, "It's kind of hard to tell a grower not to sell to the highest bidder."
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