Locavores vs. Basic Economics
23rd August 2010
Arnold Kling has the low-down.
The locavore movement says, in effect, that it knows better than the market the true cost of locally-grown vs. shipped-in produce. In fact, locavores know much less than the market. This is a basic and important point of economics. If I were to make a list of ten things that I hope that my students still understand years after they have taken my course, this would certainly be one of them.