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The Pigs and Ship not have a High Price


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In these few years, the price of pork keep rising and failing. One year ago, a famer of poor mountainous areas feed up three pigs. At that time, the pork has a high price. Until the end of year, this farm sold the pigs and got about 2000 Yuan. But last year, the price failed, so the pork did not have a high price. Farmer has no idea to earn the money. In order to maintain the normal expenses, he just could raise another two pigs. At the end of year, the income could only to keep balance.

 

When the economists hear this kind of thing, the first feeling must be an accident. Because according to general supply, when the some good has a high price in the market, which means the more people need to get it. So the people will increase supply and earn more money. When the price declines, this explained that the good could not to sell out, so the people will decrease the output in natural. But this farmer make an opposite to the market, when the pork prices low down, he raise more pigs.

 

This condition not only appeared at poor rural areas in China, but also in abroad. In Sub-saharan Africa, breeding sheep is the only production activities for the local people, and also is the only method to change the money. So, it will appear such a phenomenon: if this year, the sheep did not have the high value, the local people will breed more sheep to keep the revenue.

 

But they can only depend on the pigs and sheep to change money. If the needs of pigs and sheep reduced, they have no choice. They can only to feed more pigs and sheep.

 

If we want to help this people to get rid of the poor condition, it is not the good way to support money and expand production. We have to help them to make a variety of business. If the farmer learns to plant the apple trees, he can get the benefits to fix the lost of the pigs. The same truth is to the African people.

 

 

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IvyChen Article's Source: http://articles.org/the-pigs-and-ship-not-have-a-high-price/
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  • Posted On July 8, 2012
  • Published articles 10

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