David Cronin

Jesu C.

He\’s actually arguing that import tariffs make Ghana richer. No, they don\’t. Tariffs on poultry will make poultry farmers richer an every consumer of poultry poorer. As, even in Ghana, there are more consumers than producers of poultry, the net effect is impoverishment, not wealth creation.


3 thoughts on “David Cronin”

  1. Ghana even has tariffs on products, such as heavy machinery, which they do not internally manufacture. As you say “Sheesh”.

  2. Apart from the fact that there is no reason to suspect that Ghanayan Politicians are any less stupid than ours are, they probably resort to tariffs as they are the easiest form of tax.

  3. So Much For Subtlety

    Well the tariffs might make sense for Ghana if they were for revenue raising only. Ghana does not, I suspect, have a large law abiding literate public which is more or less a requirement of an income tax system. There is simply no way that Ghana could enforce it – or a VAT come to that. So if tariffs were a substitute for other forms of revenue raising, I’d reluctantly support them as the best form of taxation for low literate, low trust developing countries.

    But somehow I don’t think that is the argument that is being made here. If tariff barriers worked in the way the article assumes, you’d think North Korea would be an economic powerhouse.

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