World Perspectives

Taxes, Chicken and Welfare Gains

Broken Organic Window The Union of Concerned Scientists (UCS) has frequently proven its ignorance of both science and economics. Once again, it was economics that was distorted. Just as the Organic Trade Association took credit some weeks ago for organic agriculture creating more jobs than conventional agriculture, the UCS concluded that organic dairy farms in Vermont and Minnesota had higher revenues than if the same dairy products had been conventional. According to UCS, "organic operations would provide more value to the economy"; however, the group is ignoring the loss of welfare by consumers paying the higher prices with no proven gain in welfare. In effect, they ignore the broken window parable by Frederic Bastiat. Counting Chicke...

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