Monday, October 27, 2008

King Midas 2008, or, you can't eat capital-intensive anything

There is a folk tale of a King Midas who received a magical gift, to transform everything around him into what he loved: gold.

This is a story that we need to hear, again.

For example:

It seems that there are some who believe that the best use of land is the most capital-intensive use. If this is what you believe, it makes sense to pave or build over every inch of arable land. It seems that some of those who have these beliefs, have the magical ability (or intensive capital) to make this happen.

The only problem is: you can't eat capital-intensive anything.

Some say economics is very complicated. I say: let's grow apples and cherries, wheat and rice!