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Free trade is optimal... assuming you're optimizing for the greatest number of goods manufactured at the lowest price. Given that all the developed economies ha
by sbierwagen 7y ago
Free trade is optimal... assuming you're optimizing for the greatest number of goods manufactured at the lowest price. Given that all the developed economies have been demand-constrained since World War 2, that might not actually be the best variable to optimize for.
- arcticfox 7y agoThat's an interesting take that I (total non-economist) had never considered, where does the demand-constrained philosophy lead to in terms of variables to optimize for, and eventually, policies?
- rogerkirkness 7y agoThere's no such thing as demand constraints if you are talking about the whole economy: the supply of money is the constraint.