PLCY 110 Lecture Notes - Lecture 22: Lubbock, Texas, Factory System, World Trade Organization
Document Summary
Lubbock, texas (cid:1445)cottonest city(cid:1446) in the world. Has only missed 4 cotton harvests ww2. 200 years, us undisputed leader of cotton industry. Climatic reasons few industrialized nations produce cotton. Us has had a trade deficit since 1975. Skill of advantageous us cotton farmers government subsidies. Us cotton subsidies exceeded poor nation"s" entire gdp per capita. Wto ruled us cotton subsidies violated global trade rules and unfairly tilted the playing field toward american producers. Subsidies can"t be longer-run explanation for us cotton industry"s dominance. Cotton farmers" production dynamic adaptability makes them successful. West africa and other developing nations don"t have this and subsidies. Us cotton growers have been embedded in a set of institutions that insulate them from the full strength of a variety of market forces. Cotton industry risky yet surprisingly beneficial in us. Industrial revolution gave birth to consumer class. Technological innovation increased productivity, higher productivity in turn lowered prices.
