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Originally Posted by Nafi
^^^ Yes but still the fact you cannot buy from abroad, will stimulate a demand for domestic production and stocking.
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But that doesnt happen due to two things
1. Import reliance: In Bangladesh we depend greatly on imports on all sorts of things ~ from rice sugar and onions all the way to machinery to produce things domestically. For things like the Machinery and Graphics card I talked about... they're two ends of the spectrum one for a productive purpose (the machine), the other strictly for personal consumption (the graphics card). Instead of domestic production and stocking, we're just paying more to get the same quantity of productive goods due to transaction costs. This is an unnecessary diversion of valuable money that couldve more efficiently contributed to domestic production.
2. Those who have wealth are nonetheless going on and engaging in conspicuous consumption (i.e unproductive) such as the $3 million diamond studded shoes, BMW X6s, etc instead of investing in things that will create employment or distribute income more equitably among the population at large.
As the article from your overpopulation thread says: "Bangladesh is a one-trick pony" we're only running on garments exports and unable to do anything else because of excessive bureaucracy and the uselessness of the politicians, bureaucrats and the decision making systems. 2 million people join the labour force every year looking for work, while the country only has the ability to provide a million new jobs in a year.