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by logfromblammo
3207 days ago
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People doing what they want is never negative economic output. It is positive economic output that probably just isn't getting counted by your favorite metrics. If you can't sell someone a €2 bottle of wine because they make their own, which costs them €10 a bottle but could probably only sell on the market for €1, that just means they are deriving at least €9 per bottle of entertainment value from participating in the act of winemaking. That wine tastes better to them, because they made it. And that €10 is still going to the producers of winemaking equipment and support services, rather than to other makers of wine. The economist may say, "That bottle is negative output, because that €8 difference between making your own and buying at market is €8 that could be spent elsewhere!" But that person didn't want to spend it elsewhere. They were perfectly happy burning that €8 on their hobby, just like someone else might pay €8 to see a movie in a theater. Rational actors don't make themselves more miserable so that someone else can make another buck. And you can't say that €8 is wasted because the owner of it didn't spend it on what you wanted them to spend it on. Burning down your vinyard is actual negative output. The productive resource is gone. There are no grapes. There is no wine. There is no money paid to maintain the vines. There is no money paid for bottles or corks. There is no entertainment value from DIY winemaking. All that remains is the desire to drink wine, which can be fulfilled by someone else, whose wine is now worth relatively more only because it represents a larger slice of a smaller pie. |
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When the normal culture in vast regions of the country is to drink 6 liters of wine per day (yes one person) you have a problem. One way to fix it is to incentivize people to stop hoarding hectoliters of wine in their basements.
My grandpa stopped making wine 5 or os years ago and still has about 1,000 liters of inventory. Now that he drinks less it’s almost def gonna last him for as long as he stays kicking.
How’s that for broken window?