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The Adam Smith Institute
The Adam Smith Institute is the UK's leading innovator of free-market policies. Named after the great Scottish economist and author of The Wealth of Nations, its guiding principles are free markets and a free society. It researches practical ways to inject choice and competition into public services, extend personal freedom, reduce taxes, prune back regulation, and cut government waste.
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Just say no to subsistence farming
By Alex Singleton
Today's Guardian says that: "Genetically modified crops will not help the developing world." It argues that the move from inefficient, subsistence farming, to more efficient, science-improved farming, would mean that lots of people would lose their jobs. Let's look frankly at subsistence farming. Has any population, anywhere in the world, become rich as a result of subsistence farming? The answer is no. Subsistence farming, backed by laws that prevent a population from moving up into other industries, ensures that a population stays poor. Some might well like us to subsidise this by transfer payments from the West, or by buying "fair trade". But this has a limited effect, and is hardly sustainable development. Why not instead let people develop into producing products that bring a better return? The problem with the Guardian's analysis is that it is static. It only looks at one stage. But real life is not static: it is dynamic. Yes, the numbers of people doing farming will decrease. But, as long as countries allow a free-market, the people will move into better paid jobs. They have done wherever the market has been allowed to exist. Feedback
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Adam Smith Institute Tel +44 (0)20 7222 4995
Adam Smith was the great Scottish philosopher and economist best known for "The Wealth of Nations", his pioneering book on free trade and market economics.
A wide selection of material about Adam Smith is now available on the Adam Smith website. This includes the full text of his two major works, The Theory of Moral Sentiments and The Wealth of Nations. |