Wednesday, April 8, 2009

Random Economic Thoughts on Passover

Tonight is the first night of Passover. Traditionally, Jews have a Seder, which is a big meal with a bunch of Matzah. As part of the meal we retell the story of the Jews exodus from Egypt from Let me people go to the plagues to parting the Red Sea.

So 4 economic musings for Passover.

1.In many places people would be happy to see a large population of migrants return to their home country. I wonder if there weren’t some Egyptian at the lower end of the economic spectrum hoping for the Jews to leave to open up jobs building pyramids. However, for the Pharoh more cheap labor was probably better.
2.Not letting the bread rise because of fear of being attacked a great demonstration of opportunity cost.
3.Less developed economies are mainly reliant on agriculture, thus the plague of cattle disease was probably one of the worst economically. Although it is also hard to work if you are covered in boils and it is dark.
4.The last plague was killing of the first born son. According to the Solow model population growth inhibits growth and capital destruction allows for me easy growth. So we would expect strong economic growth from Egypt after the plagues. Someone will have to ask this to Solow at his Sedar.

Also enjoy my previous posts on passover and economics!

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