What Are The Basic Arguments Of The Staple Thesis

What Are The Basic Arguments Of The Staple Thesis-63
If the oil is expensive to extract and ship, like tar sands oil, a low price can put your oil out of business.If, in addition, that oil is especially dirty and has climate and environmental consequences beyond the ordinary (which are bad enough), then importers may be, ought to be, reluctant to touch it.Alberta governments have planned so badly that as soon as the price of oil falls – which is bound to happen every so often – their finances move into deficit and austerity has to be imposed. As I write, the federal government is delaying its budget because, says Finance Minister Joe Oliver, the price of oil is “volatile” – as if this is a new discovery.

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Over-reliance on staples may create a mentality, a staples trap, that inhibits these liberating forces.

Given the dependency and monocultural tendencies of a one-staple economy, it makes sense to try to lessen those effects.

But oil is power and the more you rely on it, the more it imposes its will, dominating the economy and denying alternatives (Harper’s version of Thatcher’s TINA: “There is No Alternative”).

Economic historians talk of “path dependency,” of the difficulty of shifting the way things are done from one path to another.

That then affects not just your disposable income but, if you live in an oil-exporting country like Canada, the state of the national economy.

The moral here is that life in a staple-exporting economy, at least when that staple is oil, is something like riding a roller coaster.

These countries he explained were the eastern part of the world which are not nearly as developed as the west. This simple yet realistic explanation; explains why in all of the wars that is part of our history has always had the same alliances as he explains it “the west against the rest”. He talked about the differences between what started World War one and what started World war two and it just made since because that is all that would be left.

They are reasonably less economically stable and rich as the U.

And then, they’re so shameless as to claim (correctly) that when the price of oil and the Canadian dollar fall – eliminating the Dutch disease to which they never admitted – eastern manufacturing benefits.

The mainstream media are then complicit in spreading this impossible message, at best displaying a remarkable unwillingness to engage in straightforward economic analysis.


Comments What Are The Basic Arguments Of The Staple Thesis

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