Skip to content

Josh Kimbrell

SC State Senator – District 11

Primary Menu
Connect
  • Home
  • Is “Fair Trade” Really Fair?
  • Headlines

Is “Fair Trade” Really Fair?

Josh Kimbrell May 25, 2012 2 min read

Free Markets work best when they’re, well, free. In the case of “Fair Trade” certified coffee, which is the rave at restaurants, coffeehouses and grocery stores, markets are manipulated to make folks feel better. As with a plethora of progressive policies, the only people that benefit from the program are those who came up with it, and even that in the form of feelings. The tangible result of manipulating markets is false hope and shattered dreams.

Fair Trade certified coffee products are actually creating a class of impoverished farmers, though the aim is to aide the existing poor. The reason is that Fair Trade certification pays a premium for coffee products, above that which the free market mandates. This creates an illusory, or false, profit incentive for folks in developing nations to engage in the coffee farming business. The artificially inflated price paid for the beans by progressive companies sends a false signal to farmers, and currently non-farmers, that there is pent-up demand for coffee beans. Believing money is to be made, folks flock to the coffee industry to get in on the action. Alas, however, they are sorely disappointed.

The artificially high price artificially grew the supplier base, while demand remained unchanged. Farmers have been lured into the coffee farming industry, and have been left struggling to break-even, much less make a profit. Wishful thinking by secular progressives always leads to pain. Ignoring reality, however, doesn’t make the consequences any less real.

From today’ stack…

http://www.csmonitor.com/Commentary/Opinion/2008/0808/p09s02-coop.html

Continue Reading

Previous: Recovering from the President
Next: Our Life In Ruins?

Related Stories

SC Needs a Tax Cut
1 min read
  • Headlines

SC Needs a Tax Cut

February 22, 2022
Facebook Live: COVID Policy (9/1/21)
1 min read
  • Headlines

Facebook Live: COVID Policy (9/1/21)

September 4, 2021
No, “The Star Spangled Banner” Does Not Promote White Supremacy
4 min read
  • Headlines

No, “The Star Spangled Banner” Does Not Promote White Supremacy

September 27, 2017

You may have missed

ESGs Have No Place in SC
1 min read
  • Economy
  • State Economy

ESGs Have No Place in SC

February 24, 2022
SC Needs a Tax Cut
1 min read
  • Headlines

SC Needs a Tax Cut

February 22, 2022
Facebook Live: COVID Policy (9/1/21)
1 min read
  • Headlines

Facebook Live: COVID Policy (9/1/21)

September 4, 2021
No, “The Star Spangled Banner” Does Not Promote White Supremacy
4 min read
  • Headlines

No, “The Star Spangled Banner” Does Not Promote White Supremacy

September 27, 2017
Copyright © All rights reserved. | MoreNews by AF themes.