Why the Protectionism?

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The NYT had a very interesting piece about a new laptop computer, designed for the developing world, which is supposed to sell for $150 a piece, with the price projected to drop to $100 in a couple of years. (The computer uses a Linux operating system.) While this sounds like it could potentially be a great advance for people, and especially school children, in the developing world, the article reports that the innovator behind the project insists that people in rich countries should pay $450 for Dell computers. The reporter should have pressed this one a bit. According to the article, the manufactuer will be making a profit selling the computer at $100-$150. What's wrong with letting people in rich countries also benefit from this technology? It won't take away the benefits for the poor. A good reporter would ask this question. Fortunately, markets being what they are, the computers will find their way into rich countries regardless of the innovator's intentions, but it would seem to make more sense to just let anyone buy the computer who wants it at the going price.

--Dean Baker

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