Daniel Aronstein of The Astute Blogger has sent us a link to a fascinating article from the BBC (!) on the triumph of free market principles in New Zealand. Twenty years ago, farm subsidies were ended there, and of course the left predicted disaster. However, the Beeb acknowledges that

Their removal, far from destroying New Zealand agriculture, appears to have re—energised it.

Agriculture contributes slightly more now to the total economy than it did in the era of subsidies and there is plenty of evidence the land is being farmed more creatively.

Twenty years ago the wine industry was too small to be measurable. Today in some areas grapes have replaced sheep as the main source of revenue.

I spent some time in NZ shortly after these market reforms went into effect, and there was no shortage of people bemoaning the end of life as we know it. I am glad that reality has so strongfly countermanded ideology that even the BBC sees it.

Thomas Lifson   10 18 04