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Politics : View from the Center and Left -- Ignore unavailable to you. Want to Upgrade?

To: Hawkmoon who wrote (8624)1/10/2006 9:39:06 AM
From: Lane3  Read Replies (2) | Respond to of 541346
 
Won't they still find Coca and Poppy cultivation more profitable than other forms of agriculture?

Very likely it would remain more profitable than growing corn, although prices would probably drop considerably. But it would be a legitimate business. It could be run by businessmen, not criminals, and regulated by government. Working conditions and the surrounding culture would surely improve. And factories for processing and packaging would likely be built close by, which would add jobs, better jobs.



To: Hawkmoon who wrote (8624)1/10/2006 11:37:12 AM
From: TimF  Respond to of 541346
 
The price would go down along with the risk. Maybe the "risk-adjusted rate of return" would be similar. Any really specific calculation of such an adjusted rate would probably be at least partially bogus but the idea itself is still relevant. People will accept lower returns if the risk is lower.

Tim


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