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Specialization also applies to nations. It is literally the foundation on which David Ricardo described the comparative advantage economic model. We can argue
by master_crab 2y ago
Specialization also applies to nations. It is literally the foundation on which David Ricardo described the comparative advantage economic model.
We can argue some nations have been pretty unfair with their tariff rates over the years, but let’s not ignore 200 years of economic science.
- AnthonyMouse 2y agoThat applies when your model of a country is on the scale of something like Switzerland or Ireland, which is to say something on the scale of Pennsylvania or Colorado. The US is more on the scale of a continent than a country.
- WillPostForFood 2y agoEconomics isn't science, and while Ricardo has some brilliant insights, it isn't a science; he barely models anything. It isn't even a hypothesis since you can never really test it. The core of his idea is this: the rate of profits can never be increased but by a fall in wages [...] If, therefore, by the extension of foreign trade, or by improvements in machinery, the food and necessaries of the labourer can be brought to market at a reduced price, profits will rise. I.e., use trade to get to lower wages