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> Moreover, trade is always equal[7]. If the US sends China $100 of corn and China sends back $100 of plane, who cares? That's just narrow-minded economic dogm
by Chaebixi 9y ago
> Moreover, trade is always equal[7]. If the US sends China $100 of corn and China sends back $100 of plane, who cares?
That's just narrow-minded economic dogma, and economics is very far from a complete theory of humanity.
For a illustrative example of why it's too simplistic, consider this: people with weapons can coerce people without into bad trade deals. Aircraft production is more of a weapon-making skill than agriculture. If China has the weapon-making skills and the US loses them due to dogma-driven trade specialization, a future China (overtaken by some racist ideology, for instance) could conquer and destroy the US. There are political, military, and other reasons why someone should care about the specifics of what they're trading.