3 ms·
Because comparative advantage means that we all get richer collectively? Like - the basic principle driving better living standards over the last 80 years?
by whimsicalism 3y ago
Because comparative advantage means that we all get richer collectively? Like - the basic principle driving better living standards over the last 80 years?
- rayiner 3y agoDefine “better living standards.” Obviously has been great for third world countries. But folks in the west don’t seem to happy about the situation. I don’t think the widespread availability of cheap Chinese crap offsets the downside of hollowing out the industrial base and non-college jobs.
- astrange 3y agoThat was caused by bad US monetary policy. You've confused cause and effect. (Americans hate inflation so much they preferred the Volcker recession in the 70s, which is what caused the deindustrialization, which is what caused things to move to Asia.)
- whimsicalism 3y agovolcker recession was in the 80s
- FrustratedMonky 3y agoAh. I see. You are going back to old Adam Smith. Let places/people that can make things more efficiently, do them. Example: Don't give subsidies to car companies in countries that aren't good at making cars, it is inefficient. Better to focus on what you are good at. There are exceptions: National Security. See Energy, Semi-conductors. or To protect an industry while it grows, gets up to speed. Japan didn't become industrial power house out of nothing, they were very protectionist. Now they are dominant, but they aren't dominant because they let anybody at all come in and compete. They subsidized and protected their industry until they could stand on their own.