Free market reforms hurting Iraqi economy.

[Az]

Oh, yeah baby! Iraqi traders have been buying everything they can lately around here, Since there is no import tax. it's been in the papers lately. In Jordan, Syria, and here, too, via the Jordanians. cars, consumer goods, everything.

[Kidlicious]

Originally posted by Boddington's
What do you recommend Kidicious?

Hand Iraq back over to a dictator who murders and tortures his people at will?

Besides, we have seen no evidence of this increase in unemployment? Reputable source please.

Additionally, which industries are affected? Why?

I think the domestic industries should be protected and there should be new industries created. That way the money that is being injected into the economy can circulate and create jobs.

I'll give you some quotes out of the SF Chronicle in another post.

[Imran Siddiqui]

There is chaos in Iraq. In order for the free market to work, you need law and order.

So wait... there is chaos in Iraq, so we should close off imports and hope that domestic businesses will sprout up while chaos is around them?

[MichaeltheGreat]

Originally posted by Kidicious


Christ does it matter. Even if there were perfect order there's no way that Iraqis are going to be able to compete.

It depends on the product - if it's Color TV's or DVD players, they're a ways behind the curve, but there's a hell of a lot of mundane manufactured products in a normal consumer economy.

[Solly]

It's a shame that the left seems to dominate the infant industry argument. Some of it is plausible and even sensible.

However, during debate it's best to consider it in a rather more stable - yet developing - country, rather than one that has just seen the removal of a dictator and sizeable proportion of its law- and order-enforcers with it.

So let's separate the issue from that of Iraq yeah.

[Kidlicious]

The Chronicle wasn't specific. Measurements are impossible, but it speculates that hundreds of factories have been closed. They say Textile plants, clothing factories and agriculture have been particularly hard hit.

Bottling and beverage industries have also been hard hit.

[Velociryx]

And it should be noted that with the sheer amount of oil Iraq is sporting, there is scant need for them to even try and catch up with regards to DVD players and such....they don't HAVE to compete in those markets, cos they have the ace of spades (oil), and it will get them anything they need, ultimately.

The situation WILL NOT improve markedly until the Iraquis are put in charge of their own destinies. In the immediacy, that means arming some and putting them on patrol with our boys to restore order.

It means getting the lights and water back on YESTERDAY, and then getting the medical infrastructure working tripletime.

After that, we can start thinking in terms of protecting and growing new industries, but attempting to do any of that stuff before the basics are in place is a lesson in futility. In short, the economy WILL continue to suffer until and unless the basics are in place and some sense of order is restored.

We're not there yet.

-=Vel=-

[MichaeltheGreat]

Originally posted by Kidicious

Is it too much to expect to keep the jobs they had?

You mean the jobs in the military, intelligence services, and doled out by Baath party patronage to those who were Baath loyalists?

Believe it or not all economic activity did not cease in Iraq, but the domestic industry is now failing completely because they can't compete with the imports.

Nearly all ceased, and domestic economic output will rebound over time.

[Kidlicious]

Originally posted by MichaeltheGreat


It depends on the product - if it's Color TV's or DVD players, they're a ways behind the curve, but there's a hell of a lot of mundane manufactured products in a normal consumer economy.

I can see the reason for wanting the Iraqis to have these products that they couldn't afford before, but every dollar spent on these goods are dollars that could be spent on Iraqi products, and when it is spent on Iraqi products it has a multiplier effect and it is much better for the economy

[Kidlicious]

Originally posted by MichaeltheGreat
You mean the jobs in the military, intelligence services, and doled out by Baath party patronage to those who were Baath loyalists?

We better find a subsititute for it, because Iraq depended it.

[MichaeltheGreat]

Well, you could argue Chicago depended on Capone, too.

The need to find a substitute is a given.

[DanS]

I can see the reason for wanting the Iraqis to have these products that they couldn't afford before, but every dollar spent on these goods are dollars that could be spent on Iraqi products, and when it is spent on Iraqi products it has a multiplier effect and it is much better for the economy

You keep repeating crap like this, but it just isn't true. I understand little about economics but it doesn't even pass my sniff test!

The fact is that dinars buy domestic products while dollars buy imported products. It is rubbish to say that "every dollar spent on Iraqi goods", because no dollars are spent on Iraqi goods!

[Kidlicious]

Originally posted by MichaeltheGreat
Well, you could argue Chicago depended on Capone, too.

You're missing the point, which is that many jobs need to be created to make up for the jobs that have been lost and the jobs that didn't exist. Importing goods is the way to lose jobs, not create them.

[Kidlicious]

Originally posted by DanS
I can see the reason for wanting the Iraqis to have these products that they couldn't afford before, but every dollar spent on these goods are dollars that could be spent on Iraqi products, and when it is spent on Iraqi products it has a multiplier effect and it is much better for the economy

You keep repeating crap like this, but it just isn't true. I understand little about economics but it doesn't even pass my sniff test!

The fact is that dinars buy domestic products while dollars buy imported products. It is rubbish to say that "every dollar spent on Iraqi goods", because no dollars are spent on Iraqi goods!

You're point is that dollars aren't in circulation in Iraq? What do you think the military spends? Do you have another point?

[Berzerker]

Free market reforms hurting Iraqi economy.

Blaming the current transitional state of the Iraqi economy on market reforms is just ridiculous.

I think you mean "kidiculous".