A Market Advice for President Jonathan Goodluck (IV)

But this is a bad economic idea whatever the reasons are. For a rising period of importation of tires from has increased in worth and in natural condition, the industry has now attracted the greedy nose and eyes of French companies. In many ways, a member of Nigerian ministry cannot make so public a statement had efforts not been made to lure the commercial Actors towards an informal alignment with Michelin and Dunlop. Of course the foreign companies have no interest for long term investment and if they did, they wanted local currency for such support. The only way to control so vast a Nigerian market was naturally through High Tariffs, tariffs so high. With high Tariff structure, there will redemption through sales and then there will be inflationary pressure from need to profit and cost, then the domino effect.

But if John Maynard Keyes opens ‘The General Theory’ with opposition to Say’s Law that “supply creates its own demand” is does not at anytime mean that he was talking from market perspective which was Says. In market reality, supply does create its own market and for that, penetration of goods and availability of market can make a difference in terms of public trust. But on the upside view Keynes made that it was demand that created supply, hence attention on production, we see the inverse relationship between political economics and market economy. One key in the argument is that one side of the case involves the spending government and the other side involves the sales district, markets actually. Surely we wouldn’t need James Buchanan idea of public choice which inveighed and remained critical of Keynes, in which he suggested that public choice is vulnerable to market condition. This is easily achieved through High Tariffs which is anti competitive and which can be of some benefit to the country and no.

The case in point will be the outbreak of 19th century Irish corn and potato embargo which Thomas Malthus argued that local prices had to appreciate first and formally to gauge the rate of importation of corn from Ireland. It was a wrong and right argument. Wrong because of the rent issue and the case of subsistent wage, right because of diminishing returns with view of relatively matching number of small scale English Agriculturist in the 19th century English population. Of course William Jevon from sales and pure market perspective challenged Malthus and his point on total and marginal utility apply in Nigeria since utility must compensate wage, a classic Betham on Utilitarian economy (on what we need, including industries and stadium) with the twist on labor and wage increase.