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Random idea: If protectionism works cannot a group of people decide to create an internal economy where they purposefully trade with each other before outsiders
by lumberjack 11y ago
Random idea: If protectionism works cannot a group of people decide to create an internal economy where they purposefully trade with each other before outsiders for all products that they manufacture? They will buy goods for above real market value but the money will remain within their internal economy. Biggest problem would be enforcing the contract.
I think this already sort of exists somewhat. If my close relatives, manufacture something, I gladly buy their goods over those of their competitors because yes, I am paying more but the money is supporting my uncles, nephews and nieces. I think that's a net positive for me. They reciprocate the favour. As a family we are wealthier than we would be otherwise because, no, they cannot abandon their business and start new businesses just so they could take advantage of competitive advantage. That is unrealistic. They know only one market well enough and do not have the resources or guidance to get into a completely different market.
I guess the Amish are another example of this and I believe Israel's Kibbutz aswell.
- moonchrome 11y agoExcept that people who are globally competitive have no incentive in participating - they can earn on a global market and enjoy the cheaper/better goods provided by others.
- lumberjack 11y agoWell that's what trade deals are for. You can convince a subset of those "globally competitive people" to participate by vowing to buy their services over those of their competitors. They lessen their risk of finding work and you get a larger economy. You don't need everyone to participate, just a big enough economy. Also one distinct advantage over a country doing the same thing, is that you can choose who can participate or not. So once you reach the level of adequate manufacturing for a certain good you can restrict participation of people offering the same service/skill.
- moonchrome 11y ago>You don't need everyone to participate, just a big enough economy. That might work for Amish but unless you plan on learning how to churn your own butter and know someone who can print a CPU on to silicon wafer in their garage I doubt it translates well to the real world. As a software engineer this should be obvious to you - writing a software service/program can solve a problem globally - few people can solve a problem for hundreds of millions - specialization, automation, IT all changed how things scale - I don't need to grow my own food anymore, farmer gets to enjoy social networking, video streaming and games - win/win. What you're suggesting is that we duplicate the work being done or do it sub optimally so that we can benefit people who aren't competitive.
- SixSigma 11y agoIt's called "The European Union". International trade helps capital, not citizens. Ricardian Comparative Advantages of Nations has been keeping agrarian societies in place in 1817. Free Trade doesn't work [1] it just sounds good because of the words "free" and "trade". [1]http://www.freetradedoesntwork.com/ http://www.freetradedoesntwork.com/
- kaonashi 11y agoThe new agreements seem to be wanting to keep "manufacturing" nations from engaging in design through strict IP laws. Used to be the empires wanted manufacturing all to themselves, now things have shifted.
- SixSigma 11y agoExactly. Virtual supply chains where we design and manage, you make it and ship it to each other.
- kaonashi 11y agoThe trade agreements are all about protectionism for capital and market discipline for labor.