“Low income levels and high costs for transporting goods to the hinterland limited the size of the market for manufactured goods in Brazil,” in Leff’s analysis. In this sort of situation, not even protective tariffs meant to shore up demand for domestic products could help. “Industrialization based on the internal market clearly required the prior emergence of a domestic market,” Leff added, not without some irony.
Nathaniel Leff Explains Brazil (And Maybe Nigeria)
Feyi Fawehinmi
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Interesting.

Higher consumer incomes > Greater demand > Bigger market > More producer profit (and greater incentive to sell) > Higher consumer incomes > …

Virtuous cycle. Fascinating.

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