In economics, you’d call these zombies—unprofitable companies that would fail if governments didn’t prop them up. There are two big problems with zombies. First, they take resources that could go to support new, productive companies. And by subsidizing zombies, governments allow them to keep prices low, driving productive companies out of business. If industrial fleets weren’t subsidized, they’d go out of business. Small-scale fisheries that don’t need enormous amounts of fuel to catch huge hauls of fish—i.e. the ones using sustainable fishing practices—would then in theory thrive. Many of these fishermen are in poor countries whose governments can’t afford to compete in the industrial looting.
Posted on: Wed, 25 Jun 2014 22:12:14 +0000
Trending Topics
Recently Viewed Topics
© 2015