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I've seen that postulate in the very first chapter of wealth of nations. But perhaps Ricardo expressed it in mathematical terms? And I'd argue that there are p
by TZubiri 2y ago
I've seen that postulate in the very first chapter of wealth of nations. But perhaps Ricardo expressed it in mathematical terms?
And I'd argue that there are properties of nations that make them distinct from individual humans or even companies.
The relative autarky possible for a country is much higher.
I've read a similar position by a libertarian Hayek I think in "I pencil", but I never did buy the argument, the idea that a pencil is the product of global trade, I don't buy, you can make national pencils without a sweat.
- ViktorRay 2y agoIs the following video the “I pencil” you are referring to? https://youtu.be/67tHtpac5ws https://youtu.be/67tHtpac5ws
- TZubiri 2y agoThe original is an essay from Hayek
- marcosdumay 2y agoHum, no. Adam Smith didn't understand that people would trade even if one of the peers was better at every single thing. He got lots of stuff right, and even some things that took until the 19th century to make into mainstream economics. But not this one.
- TZubiri 2y agoIs it possible that he never posited the question? I'd say it unfolds naturally from his readings that it is the case. That said, isolating and framing the question and its consequences is not insignificant.
- marcosdumay 2y agoHe is clearly on the opinion that specialization means the best entity (person, company, country, he talks about all three) capable of creating each product will tend to work on it, and then trade. The theory of comparative advantages is a very unintuitive idea. There's a reason that it took until the 20th century for economists to notice it.
- roenxi 2y ago> the idea that a pencil is the product of global trade, I don't buy, you can make national pencils without a sweat. It is, obviously, possible. Pencils are about as simple as it gets. But it is hardly a no-sweat process. It made international news when China declared itself capable of producing a ballpoint pen using only native tech and materials. It was a point of significant pride to the Chinese government at the time - as well it should be, it was something of a manufacturing and policy tour-de-force. https://www.washingtonpost.com/news/worldviews/wp/2017/01/18/finally-china-manufactures-a-ballpoint-pen-all-by-itself/ https://www.washingtonpost.com/news/worldviews/wp/2017/01/18...
- TZubiri 2y agoPens I would say are significantly more complex than pencils. Props to china for that.
- Dracophoenix 2y agoThe paper Hayek wrote is titled The Use of Knowledge in Society. I Pencil is meant to be a simplified and poeticized example of Hayek's evaluation by Leonard Read.
- TZubiri 2y agoOh my bad!