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> Why we would trade away our comparative advantage in things like designing widgets As China has shown over the past 20 years, that advantage erodes quickly i
by triceratops 10mo ago
> Why we would trade away our comparative advantage in things like designing widgets
As China has shown over the past 20 years, that advantage erodes quickly if you stop making widgets altogether. It's very easy for widget makers to move up the value chain into widget design. And once they do, you're cooked, there's nowhere to hide.
Not to mention, widget design can't absorb as much labor supply as widget production. And many people can't do widget design, still need a living, and would be perfectly competent widget makers. So...you gotta solve for that if you focus only on widget design.