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I'll quote Nassim N. Taleb here : With [...] macroeconomic analysis working worse than astrology, microeconomic papers wrong 40% of the time, the appointment o
by wazoox 11y ago
I'll quote Nassim N. Taleb here :
With [...] macroeconomic analysis working worse than astrology, microeconomic papers wrong 40% of the time, the appointment of Bernanke who was less than clueless of the risks[...], people are perfectly entitled to rely on their own ancestral instinct and listen to their grandmothers with a better track record than these policymaking goons.
from https://www.facebook.com/nntaleb/posts/10153658794008375 https://www.facebook.com/nntaleb/posts/10153658794008375
There is excellent evidence that many countries became prosperous because of protectionism: UK, USA, S. Korea... See for instance the book from Ha-Joon Chang, "Kicking Away the Ladder" (a digest can be found here: http://www.paecon.net/PAEtexts/Chang1.htm http://www.paecon.net/PAEtexts/Chang1.htm )
The use of averages conveniently masks the fact that most people lose while a few fat cats grab all the gains. When a group of 1000 people earns collectively 1 million, it's of tremendous importance if everyone gets $1000 or if one gets 999001 and all the others 1$ instead. "Free trade agreements" generally looks precisely like the latter.
- bko 11y agoEvery American benefits from imports. Not just a few. The value of consumer choice could not be overstated. Besides, free trade puts competitive pressure on American corporations. The "fat cats" would love protectionist markets so they don't have to compete with foreign companies. This has led to much higher levels of service and more choices to all Americans.
- douche 11y agoIt's hollowed out the middle, not just the middle class, but the spectrum of products available to buy. You used to be able to buy decent quality, medium price products that were made in America. They might not be as high-quality as the very best, but they were a lot better than the foreign-made WalMart/Harbor Freight-grade trash. Now we've still got the high-end products, but everything else is almost indistinguishable cheap trash. The corporations don't really care whether they make something in Ohio or Shandong or Hanoi, as long as the differentials for labor and shipping come out positive. The biggest corporations are effectively post-national anyway.
- bko 11y agoI disagree that today's products are "cheap trash". Consider the automobile, today's entry level Camry is faster, safer and more comfortable than a 1957 Ferrari Testa Rossa. Air conditioning is in over 100 million homes [0], a significant increase from even the 1980s. TVs, telephones and appliances are the same story. The only reason that there is a perception of cheap things is that low cost items didn't exist in the past and were limited to the well off. [0] https://www.eia.gov/consumption/residential/reports/2009/air-conditioning.cfm https://www.eia.gov/consumption/residential/reports/2009/air...
- DrScump 11y ago<today's entry level Camry is faster, safer and more comfortable than a 1957 Ferrari Testa Rossa.> ... and is also the "Most American-made Car" based on domestic parts contents. https://www.yahoo.com/autos/toyota-camry-tops-ford-f-150-as-the-most-american-122790558077.html https://www.yahoo.com/autos/toyota-camry-tops-ford-f-150-as-...
- look_lookatme 11y agoI think we are starting to see the effects of competitive pressure with more and more millennials (that don't live in SF, NYC or DC) opting not to marry, have children, and declining to purchase durable goods and homes.
- hiram112 11y agoThey're not having children (the non immigrants, at least) in DC, NY, and SF. I'd say most millenials are still paying off loans in their late 20s and 30s. No way can they afford a home in one of these cities on top of that.