Cutting consumption wouldn't help poor countries

By Alex Singleton | 8 February 2005

At a university talk I was giving recently, one of the audience pointed to the expensive coat she had brought with her. She said that she could have bought a cheaper, more modest coat. Should we, she asked, cut our consumption to help people in poor countries?

It's a common fallacy to assume that because rich countries consume, others are getting poorer. When we consume, we engage in trade with others. When we buy clothes made in a poor country, we give employment to workers in that country. If instead we chose to live simpler lives - like the supporters of "new economics" propose - we could also end up hurting those in currently poor countries. Cutting our consumption is a misnomer.