Friday, April 24, 2009

Swine flu name to change

The outbreak of a newly discovered "swine flu" has been sweeping the world the past couple of weeks. It all started in Mexico, and is now spreading to other countries across the world as tourist are returning to their native countries. Though the strands are part pig, people have been trying to change the name. Why? To protects the nearly $97 billion pork industry, as the name implies this virus is transferred through the consumption of meat. Some people agree, some others. Other countries have decided to stop the importation of pork from any suppliers.
From an economic perspective this is a very good thing to do. With less free trade, countries are going to have higher prices, less GDP, and an overall lower standard of living. Production possibility curves will shrink back to what they were before free trade. This does creates some winners, but many more losers. The losers will be all of the consumers of a country, spending much more money to keep their domestic producers in business because of the increased opportunity cost. The winners will be the domestic producers. This policy is known as protectionism.
In my opinion this is a very, very good thing to do. The costs weigh out the benefits, and most people are stuck with a lower standard of living. Medical studies even prove that you cannot contract this virus through the consumption of pork, and each country should continue trading with each other.

http://apnews.myway.com/article/20090501/D97T57SG1.html

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