4 thoughts on “Flat earth economics and the ‘Tesco tax’”

  1. Posted 01/08/2014 at 13:27 | Permalink

    The other argument which is often made is that “Mom and Pop” shops mean that the profits stay ‘within the community’, rather than going to some ‘souless corporation’.

    This myth also needs dispelling, as once you factor in the lower supply and running costs (due to their greater bargaining power), and greater reliance on medium-low paid employees (typically from the local area), as opposed to owners whose profits need to be re-invested or end up being eaten up by costs, there is a good argument that the total amount taken home by local residents is actually higher per square foot than it would have been if used by an ‘independent’ retailer.

  2. Posted 01/08/2014 at 15:05 | Permalink

    When people teach creationism in schools (or if people were to try to teach that the earth is flat) they are publicly ridiculed. However, the very same chattering classes who do the ridiculing wish to enshrine flat-earth economics into public policy.

    I’ve been asking why this is for 20 years. I think this persists because “conservatives” and even “libertarians” fail to understand these basic economic concepts. They cave to crony protectionism every time it affects their own backyards.

  3. Posted 01/08/2014 at 15:41 | Permalink

    @Dominic – also, there is nothing especially good about the profits staying within the community. If I did not own a mom and pop store, I might have savings in the bank or shares in a pension fund. I then get the profits from activities that go on in other communities just as other communities get the profits from activities that go on in mine. We can simply carry on shrinking the definition of the community and ensure that all profits go to the household and that all money is spent by the household on the production of the household – essentially we can do this by returning to the lifestyle of the middle ages.

  4. Posted 04/08/2014 at 08:40 | Permalink

    Dear Professor Booth

    It is interesting to see that the tax already exists in the poorer areas of the Kingdom. Are parts of England afraid of being left ahead?

    If localism really catches on, producing local bananas, mangoes and paw-paws would be quite a challenge. Pursued to the bitter end, the transport infrastructure would fall apart and we could look forward to a return to pre-canal era localised famines. Now that is ‘localism’.

    My local town held an Independents Day* to promote its smaller shops. Around the same time a survey of shoppers showed about 70% would like to see more ‘big name’ stores in the town. We must be too prosperous here.

    DP

    * Saturday 5th July. I dare say it will fall on the 4th if they keep it up.

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