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It is an idealized example of what free trade gives you. Every resource is used optimally. The argument for it is that the end result is more wealth for "ever
by fifilura 5y ago
It is an idealized example of what free trade gives you.
Every resource is used optimally.
The argument for it is that the end result is more wealth for "everyone" (on average!)
- rbanffy 5y ago> Every resource is used optimally. Would you like to be used optimally? As in, extracting the maximum work possible for as little compensation as possible? There are animal rights groups that won't let you do that to horses. > The argument for it is that the end result is more wealth for "everyone" (on average!) Looking at the average and not paying attention to the distribution is a mistake.
- fifilura 5y agoI am not arguing for either. Note the quotes around "everyone" and the exclamation mark after average. Non optimal resource allocation -> less overall wealth. And free global market is the machine that has optimal resource allocation as optimization goal.
- rbanffy 5y ago> Non optimal resource allocation -> less overall wealth. Unless the wealth is well distributed, it makes no difference for the bulk of the population whose bodies are being optimally allocated.
- fifilura 5y agoYour comment is fine. And accurate. But I am arguing from the standpoint of "global-trade-as-a-machine". And in this case an idealized machine with only one dimension (fish or crops or labor). Of course if you live in Ukraine and have only one leg and love developing microprocessors, the "global-trade-as-a-machine" will pick that up and let you work on that rather than work as a farmer (one-leggedness and interest/drive as two new dimensions). (Although just as likely it will allow you to move to another country to pursue your interest.) And of course governments have noticed the inequalities produced by this machine and are doing its best to counter that with more or less enthusiasm.
- rbanffy 5y ago> the "global-trade-as-a-machine" will pick that up and let you work on that rather than work as a farmer (one-leggedness and interest/drive as two new dimensions). (Although just as likely it will allow you to move to another country to pursue your interest.) That's not really how immigration and economic opportunity works. Our one-legged farmer would have to be astonishingly lucky for that to happen. > And of course governments have noticed the inequalities produced by this machine and are doing its best to counter that with more or less enthusiasm. It's more like they are taking measures against other governments that gain strategic relevance based on these factors. One way to counter China's advantage with manufacturing cost would be to force China to adopt and enforce better labor laws and increase compensation. In fact, having a single global standard for compensation and worker rights would be a wonderful thing. As long as it's good and includes progressive taxes on the accumularion of wealth and a mechanism to compensate for undue political power from wealth.
- willcipriano 5y agoMore wealth on average means Americans get poorer. Minimum wage, fourty hours a week puts you in the top 4% of wage earners globally.
- rbanffy 5y ago> Minimum wage, fourty hours a week puts you in the top 4% of wage earners globally. Now just imagine what the rest of the world has to cope with.
- andrewjl 5y agoWho gets to decide what counts as optimal?
- sudosysgen 5y agoIt's money that decides.
- rbanffy 5y agoCertainly not the resources.