Cato to Venture into Coffee Business - PhillyBlog

Colin P. Varga · #1 (**permalink**) 04-01-2008, 07:23 AM

From The Boston Hearld

by Janis Miller
April 1, 2008

The Cato Foundation has decided to try to put into practice some of it’s economic theories regarding Fair Trade Coffee. After many years of hiring graduate students to evaluate the principles of production and trade the Foundation will now offer it’s own coffee grown by it’s own companies in South America and elsewhere. The companies will apply the Foundations own theories and pay the workers even less than what they are making now so that they will actually have more money when the price of other goods and services fall accordingly.

Jillian Short with the Cato said that in theory paying less for goods and services could work in other areas. She cited taxes as one area where paying fewer taxes would actually increase the size of the Defense Department’s budget, and that people on Social Security would do better if they received less in benefits.

However, a cup of coffee at Star Bucks is expected to rise to $10. A Star Bucks spokesperson commented that this has to do with the fall of the dollar against other currencies. When asked about the competition from the Cato, the spokesperson acknowledged the remark with a sly smile.

jizay · #2 (**permalink**) 04-01-2008, 09:50 AM

Quote:

Originally Posted by Colin P. Varga

From The Boston Hearld

by Janis Miller
April 1, 2008

The Cato Foundation has decided to try to put into practice some of it’s economic theories regarding Fair Trade Coffee. After many years of hiring graduate students to evaluate the principles of production and trade the Foundation will now offer it’s own coffee grown by it’s own companies in South America and elsewhere. The companies will apply the Foundations own theories and pay the workers even less than what they are making now so that they will actually have more money when the price of other goods and services fall accordingly.

Great article! It's strange, though. You'd think a journalist at the Herald would be acquainted with the word its(I looked it up in the dictionary; actually a word!). You'd then think that she could form the possessive of foundation. I guess they switched to fair trade editing. Is Ms. Miller an economic columnist? Has she any formal training whatsoever in economics?

Tannhauser · #3 (**permalink**) 04-01-2008, 12:59 PM

Now that I ruined the thread, can we derail it completely with some image posting of...

Tannhauser · #4 (**permalink**) 04-01-2008, 01:00 PM

Colin P. Varga · #5 (**permalink**) 04-01-2008, 08:13 PM

From The Washington Post

by Emanuel Radinski
April 1, 2008

The Heritage Foundation has joined the Cato Institute and will set up its own distribution of the Cato coffee through shops much like Star Bucks. The outlets will be called “America’s Cup”. The coffees offered will be named after famous people from the regions where the coffee is grown. For example a blend of coffee beans from Nicaragua will be named after Anastasio Somoza and will sell for $25.00 a pound.

When asked about the name and the price the Director of the Heritage Foundation, Mr. Howard Williamson IV, said that Mr. Somoza was a popular figure and loyal friend to the United States. As to the price he stated that since Kona coffee commands this price range and didn't see any problem. Apparently the Cato Foundation had tried to set up shop in Hawaii to grow coffee there but balked at the idea of paying coffee growers and workers minimum wage. Mr. Williamson stated flatly, “It’s just not right. Our founding fathers never paid non-white people the same as white people and neither are we.”