Eugine_Nier comments on Three Parables of Microeconomics - Less Wrong

25 Post author: jimrandomh 09 May 2014 06:18PM

You are viewing a comment permalink. View the original post to see all comments and the full post content.

Comments (38)

You are viewing a single comment's thread. Show more comments above.

Comment author: Eugine_Nier 10 May 2014 05:28:25AM *  5 points [-]

If the farmer invests in cash crops and than the price of said crops collapses.

Granted this is less of a problem for farmers then other industries where you may have a harder time changing what you produce quickly.

Edit: Also the example in the parable doesn't work since Alex could produce enough food for himself on his farm during the first year. Thus it's not clear why he couldn't do so again.