Assume one country is better at producing a particular “good” than others because of its “factor endowments,” or its use of technology. In such a world, all countries would benefit if they produced what they produce best, and traded for goods that others are better at making. The theory of “comparative advantage” holds that the “gains from trade” make all nations better off—that fair trade is win-win. Recently, another scheme has emerged, whereby
some countries think others should be their “bitches.” This beggar-thy-neighbour, win/lose approach is not supported by economic theory—but it’s not
really about economics, is it?
Last of a 3-part drabble degree program in economics that started with
Economics 100 and continued with
Inequality. Graduates may collect their diploma by submitting 1 Bitcoin to the Exquisite Corpse Grift Endowment Fund. Graph by
Cmglee; AI image uncredited on
Substack.
No comments:
Post a Comment