Sunday, January 25, 2015
Erik Dahlman, Chapter 1, Question 4
In the chapter, the author mentions the problem of deforestation of developing countries. The possible answer proposed in the book is to pay the developing countries to not destroy the forests. This would be done by developed countries with more of the luxury good of the ability to care for the environment. I feel that the success for this plan is limited however since the people would then attempt to find other jobs if they cannot chop the trees and so there would be more demand for jobs and no noticeable increase in jobs leaving many unemployed and then they could possibly return to covertly destroying the rain forests.
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Wouldn't paying them flat amounts of money nullify their need for a job? Or are you saying they'd want more and just cut down the trees anyways?
ReplyDeleteNot nessecarily. Even if they were payed flat amounts to nullify their needs, the people would continue to work so as to achieve even more wealth which is where they would turn to other methods for another source of income.
ReplyDeleteAh, that makes sense. Thanks for the clarification. Good point then and I completely agree that their seeking for wealth would not stop due to small government subsidies.
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