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To: Cringing Negativism Network
By traditional free-trade theory, a nation should import what it does not produce from the nations that produce it most cheaply.

That is simply not correct, and would not be stated by anybody who has ever read a basic economics text. When nations trade, they each produce what they have a comparative advantage in. Comparative advantage and "cheapness" are not the same thing.

If anyone doesn't understand this, just google "comparative advantage" and become enlightened.

8 posted on 12/28/2008 4:52:06 PM PST by Ron Jeremy (sonic)
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To: Ron Jeremy

Yeah, I posted “Great read” before I read the whole article. By propping up our own failing industries whom produce inferior products we’re basically saying it’s okay to continue producing shitty cars and what not. Personally, I drive a Toyota would never trade it for a Ford, GM, or Chrysler POS.


9 posted on 12/28/2008 5:00:10 PM PST by randomhero97 ("First you want to kill me, now you want to kiss me. Blow!" - Ash)
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To: Ron Jeremy

“That is simply not correct, and would not be stated by anybody who has ever read a basic economics text.”

-

Seems to this poster, ‘basic economics texts’ are a bit like lawyers.

Nations do not necessarily produce what they have a comparative advantage in - it depends on the leadership and wisdom driving trade decisions in each country.

America has for a long time, been led down the path you describe. A few people have become very wealthy by demolishing entire segments of our once-historic manufacturing base, and sending strategic capabilities to communists and people who seek our destruction.

Those few people have gotten rich, by selling us out.

There’s a word for that. And it’s not “economics”.


12 posted on 12/28/2008 5:04:19 PM PST by Cringing Negativism Network ("Free Trade" = Fire Americans. Buy another company then fire more Americans.)
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