This morning I read an article in the NY Times called "Economy In Shock Struggles to Restart" (http://www.nytimes.com/2010/01/22/world/americas/22recovery.html?th&emc=th) the article was, of course, referring to the Haitian economy.
The Haitian banking system had been mostly shut down after the earthquake because officials were afraid of potential robberies. Also, the prices of goods such as: candles, ice, and matches has begun to skyrocket. However, the World Bank has made the decision to waive all of Haiti's debts for the next five years...hoping to give the country some time to get back on its feet.
One of the points in this article that really shocked me was that before the earthquake hit about 70% of the population was living on $2 a day. Can you believe that?
Anyways, the situation in Haiti is still awful, but it seems as though there may be a light at the end of the tunnel.
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The part about the candles, ice, and matches really struck me in this article. These are essentials for light, food, and survival--especially after a natural disaster when so many are displaced. Supply and demand suggests that because there is such a high demand and such a low supply for these items, suppliers can charge whatever price they want because people need them--at whatever price they can get. I think that this is awful. These people need all the help they can get and they shouldn't have to worry about spending their livelihoods on candles and matches, only on finding lost loved ones and rebuilding their lives. This principle, at times, seems to take advantage of helpless people.
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I agree with Cierra, and in addition I think that American citizens need to stop relying on the government to help people in need and start to do more to help as individuals. Let's face it, in times of crisis the USA has never stepped up to the plate and considered the value of a human life in its policies; Katrina was a disorganized mess, Asian Americans were interned after Pearl Harbor, Arabs happened to always be subject to a "random search" at airport security after 9/11, its effort, or lack thereof in Darfur... The whole system is messed up when it comes to helping people who are truly in need, and American citizens need to stop acting (not necessarily feeling) indifferent towards real-life tragedies like the one in Haiti.
ReplyDeleteThe parameter of how much money Haitians live with is staggering. Someone calculated how much each minute of class is worth at K; it came out to be about $2. E
ReplyDeleteThat is a great difference and puts things into perspective around the world. We sit in class and pay their daily wage for one hour of class to learn why prices are soaring in their economy and what is going on. When really the two dollars we spend learning would be a lot more useful if we gave it them in their time of need right now.
ReplyDeleteThe principles of economy will always be flawed if the "human element" is removed from the equation. When things are needed to live, suppliers are irresponsible if they continue to follow the laws of supply and demand. That's simple fact. In times of natural disaster, exceptions to what is normally economically rational need to be understood. If they aren't, then the crafty business person becomes a promoter of injustice, whereas in normal, "non disaster", everyday life - s/he would be just a smart business person.
ReplyDeleteHaitian suppliers are taking advantage of the scarcity of supplies and the high demand by the people. These suppliers are taking advantage of the present circumstances by raising their prices on such necessities. Candles, matches and ice are essentials that are desperately needed, so while I understand that people are trying to rebuild their lives it is important that they not be so eager to create a competitive market.Now is not the time for a competitive market.
ReplyDeleteOn a brighter note, it is great to see that the United Nations is paying people $3 a day for work, as well as the $300 million that America is giving to rebuild Haiti's infrastructure. It will be a long road until the Haitian economy has some sort of stability so it is important that we work together as a global nation to economically assist them.
the prices of goods has begun to skyrocke made the government were afraid of potential robberies, Haiti is kind of poor before, and I think after the world bank waive the debt of Haiti, after the recovery of the earthquake, the thing we need to do is to help Haiti to develop their economy.
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