What do pick-your-own-apple orchards teach about the American economy?
I read this article on Slate and did not learn anything about the American economy.
Let’s start with the thrust of the article.
- Apple farms that get people to pick their own apples are a “scam.” This is because they charge high prices for the right to buy apples; apple consumers purchase more apples at these farms then they otherwise would.
- Apple farmers should be reviled because they grow dwarf apple trees – trees where the fruit is easy to pick. Apparently, the author would prefer that orchards engage in growing trees where this was not the case, where regardless of who is picking the apples, it will be more costly do so.
- In addition, these apple farms should again be reviled because they provide value-added products.
- Apple farms get to charge a higher price and sell a larger quantity by following this strategy.
- Apple farms have taken steps to lower their costs of production.
- Apple farms produce goods and services that apple consumers wish to purchase.
And what does it mean to suggest this is a “scam?” Where is the deception?
Again, I haven’t learned anything about the American economy. What I did get out of the article is that Mr. Gross doesn’t have much faith in people making choices that make them better off. He thinks that apple picking consumers can’t help themselves (himself included), they tend to “overconsume,” “overpay,” and “overeat.” I wonder who he would like to have make these decisions for us.
Mr. Gross is certainly entitled to his opinion – he clearly has opinions on what he would like “Americans” to consume. One point we always try to make on day one of economics class is the difference between positive and normative statements. Positive statements are statements of facts – of what is, or of what will occur if a change is made. Normative statements are statements of opinion. All of the “economics” in this article is entirely normative, nothing but Gross opinions.
And another “day one of class†point – thank goodness for the beauty of markets and basic personal liberty! People like Mr. Gross don’t get to tell us what to do – we can each make the individual choices that maximize our welfare as we perceive it. The beauty of markets is that enough people wish to purchase apple donuts at an orchard, and if these people are willing to “vote with their dollars,” sure enough, producers will find it profitable to produce donuts. The fact that the author had the choice not to go there, and did so anyway, should tell him something. He says it himself – he likes to go and pick the apples.
While in order to not be accused of doing the same thing Mr. Gross does, I stop short of suggesting you should not read his articles. And it certainly is fine for authors to state their opinions. But don’t let articles like this fool you into thinking you are learning about economics. There is a reasonably famous quote attributed to Joan Robinson, an economist herself.
“The point of studying economics is so as not to be fooled by economists.”
The point is also not be fooled by those who pretend to be economists.