I don’t think that Tim Haab at Environmental Economics subscribes to the Econ-Atrocities, but by happy coincidence he’s written a blog post that would fit perfectly in the series. His topic is the Mexican government’s response to serious inflation in the cost of tortillas, which are a primary staple of the Mexican diet, and poor Mexicans (of which there are plenty) are getting hit by these price hikes like a punch to the gut. Should the Mexican government pursue [...] read more >
Trade
Econ-Atrocity: Ten Reasons Why You Should Never Accept a Diamond Ring from Anyone, Under Any Circumstances, Even If They Really Want to Give You One
Posted by emilykawano on February 14th, 2002By Liz Stanton, CPE Staff Economist
You’ve Been Psychologically Conditioned To Want a Diamond. The diamond engagement ring is a 63-year-old invention of N.W.Ayer advertising agency. The De Beers diamond cartel contracted N.W.Ayer to create a demand for what are, essentially, useless hunks of rock.
Diamonds are Priced Well Above Their Value. The De Beers cartel has systematically held diamond prices at levels far greater than their abundance would generate under anything even remotely resembling perfect competition. All diamonds not already under [...] read more >
