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by WalterBright
126 days ago
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> Imported secondhand clothing is sold at prices that local textile producers cannot compete with. As a result, local garment industries collapse, unable to survive against the flood of cheap imports. Hence, jobs are lost in manufacturing and design, stifling innovation and economic growth.What was intended as charity often becomes a form of economic sabotage. Isn't that another version of the Broken Window Fallacy? Destroying things to create jobs re-creating them is a net loss. |
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1. The elites grab the crates and hoard them, leveraging their existing power to make sure they enrich themselves and extend their power. They sell the items, but at a lower price than the Earthly-produced items, which is easy since they have 100% margin.
2. Whether or not #1 happens, it becomes impractical to make any of these goods for a living, so people stop. Eventually, the factories are dismantled or simply crumble.
Now Earth is dependent on the aliens to keep sending the crates. If the aliens ever get wiped out, or just elect a populist who doesn't like to give aid to inferior planets, then we won't have any cars, or clothes, or computers.