Tag Archives: prices

The N.S.P.H.H.B.O.P., the market, and the “Beepocalypse”

The number of honey-producing bee colonies is higher than it has been in 20 years, according to the newest USDA data. After consistent decline from the late 1980s to the early 2000s, there has been a recent rise in the number of colonies due to federal regulations promoting bee health—scratch that—beekeepers responding to changing prices of honey, bees, and beekeeping equipment.

The first-of-its-kind “National Strategy to Promote the Health of Honey Bees and Other Pollinators” was only introduced by the Executive Branch this year, after the recent bee population increase, and will probably try to steal credit from the market naturally working toward an increased bee population in the years to come.

The Washington Post article reports that the price of honey has just about doubled over the course of 2006-2014, and so have the fees beekeepers charge to farmers for bringing their colonies to pollinate fruit, nut, and veggie crops.

These increasing prices for beekeeping outputs make the purchase of beekeeping inputs a more profitable investment. Beekeeping inputs include bees, which mean more colonies are created and maintained by beekeepers.

Consumer demand drives the price of honey, which makes honey production profitable, which increases the demand for the factors of production specific to honey production. Voilà, more bees.

Also, consumer demand drives the price of food, including fruits, nuts, and veggies, which makes farming profitable, which increases the demand for pollinating services, which increases the profitability of beekeeping, which increases the demand for the factors of production specific to beekeeping, like bees.

Contrast these natural, fine-tuned, and self-regulating market mechanisms (profit/loss, imputation, supply and demand) to a few of the proposed actions from the N.S.P.H.H.B.O.P., below:

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Link Parade: 4.24.15

Russia is shutting down 2 out of 5 universities. “The majority of cuts will affect private universities that provide a poor standard of education.” Do we need a similar sort of shakedown?

Robert Murphy has a fun little piece on the importance of market prices using karaoke (his, um, specialty) as an example.

Salerno’s War on Cash bit got Rick Santelli’s attention.

Intervention Mad Libs, by Matt McCaffrey. One day I’ll use this exact form for a blog post just to see if anybody notices.

Peter Klein at O&M: “This may be the most useful document ever produced by a government agency“.

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Link Parade: 4.10.15

Today is the Sound Money seminar at the Mises Institute. Tune in live!

  • 10am – Mark Thornton, “Money and the Development of Human Society: From Barter to Bitcoin”
  • 10:20am – Jeff Deist, “A Free Market in Money”
  • 11am – Dan Sanchez, “War and the Government Control of Money”
  • 11:20am – Jonathan Newman, “Inflation and Business Cycles”

The state government of California has imposed water restrictions on its citizens to combat the drought. Economists everywhere scream, “PRICES!” (Note each word is hyperlinked to a different source. All say the same thing. California needs a higher price of water so that the scarce resource may be allocated where it is most highly valued.)

Speaking of the drought in California, “America’s Finest News Source” has been on top of it: see here, and here. But my favorite thing about The Onion is when people don’t understand that it is satire. Thankfully, there’s a place just for those instances. Here are a couple on recent Onion articles. I especially like the guy that linked the wikipedia page for “Water” in his comment:

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