The Theory of Comparative Advantage

The International Economics Study Center ^ | Unknown | Steven Suranovic

[1rudeboy]

Japan manufactures the vast majority of the high value parts and components that goes into their cars including most all of the engineering. Their so-called auto manufacturing plants in the U.S. are little more than assembly shops designed to get around Reagan's threatened tariffs in the 80s.

Good grief. How do you explain all the autos that Japan manufactures for export out of the U.S.? You honestly believe they ship the parts here, assemble the auto, and ship it out again? LOL

[Willie Green]

We are seeing increases in industrial productivity not seen since the late 40's.

That's a false and misleading statistic.
Industry is erroneously given full credit for final output despite having outsourced the work required as input.

[CrucifiedTruth]

We are seeing increases in industrial productivity not seen since the late 40's.

Yes. That is precisely the reason that we don't need to export production and create fragile economic dependencies. But we DO. And are neck deep in deficit and debt.

We have led the world ion innovations, so I don't see where you get this idea that we are stagnant, we created and drove the technology boom just this past decade.

We are in this decade not in the last. France and many other countries are ahead in nuclear technology, Japan is ahead in manufacturing and consumer electronics, China is quickly gaining ground mostly from underneath us. And we keep fueling it. The deficit is the decline. The decline of the dollar is the decline. Not to speak about debt, the lack of valuable goods to export, the fragile energy dependency, the litigious business environment, etc. etc. Wake up, the world is changing fast and requires fast and decisive action. Vague, over-simplistic slogans and theories don't cut it any more.

[Luis Gonzalez]

You're still stuck on the "peasant revolt" romantic "Guerrilla Prince" theory of Castro's seizure of power Willie?

Willie, in this thread alone, you promote Karl Marx, and openly display your belief that America is at fault for Castro...the typical Blame America First attitude.

Once again, there were no peasants in Castro's revolution Willie, and there was no economic base for his seizure of power, but I will not get you to understand that.

Castro's "revolution" was conceptualized and carried out by people very much like you Willie. Pseudo intellectuals who embraced Marx and hated America.

"In general, the art of government consists in taking as much money as possible from one class of citizens and to give it to the other." -- Voltaire

Which is exactly what you support.

You support the government imposing tariffs to protect wages inflated by Union muscle. You want the government to take out of my pocket forcefully in order to protect the inflated wages negotiated by the Unions, so that the membership dues can fatten up Union political coffers.

[Luis Gonzalez]

"Vague, over-simplistic slogans and theories don't cut it any more."

Which is why your entire post is meaningless.

[CrucifiedTruth]

You just ruined your credibility with this out-of-context quote. I urge anyone to go back the thread and see how you completely perverted my words. It's extremely obvious dishonesty.

[Willie Green]

"Marx was right."
That's an unbelieveable thing to read in a conservative American site.

Only a shallow-minded pinhead would claim that Marx was 100% wrong, all the time in each and everything he ever said.

Marx was horrificly wrong in believing he could construct some kind of communist utopian alternative.

But his fundamental economic analysis regarding the socio-economic consequences of an overabundant supply of labor in the marketplace is in total agreement with the theories of Adam Smith and David Ricardo.

It's Economics 101, Luis.
Learn something about it.

[Jorge]

A $549 billion trade deficit in goods, and increasing penetration of foreign firms into key sectors of the domestic American economy, indicate how rivals are running up the score.

Not really.
The truth is only prosperous nations can afford to import more goods than they export, and those times when America's had the lowest trade deficits have been when we were in economic recession.

In addition, more jobs are outsourced to America, than America outsources to other countries.

[Jorge]

If you oppose free trade Willie, then it stands to reason that you support not free trade. Not free trade translates into government controlled trade, and by default, that means government control of industry.

Excellent point.

[WRhine]

Good grief. How do you explain all the autos that Japan manufactures for export out of the U.S.? You honestly believe they ship the parts here, assemble the auto, and ship it out again? LOL

This is how HondaCorporate describes its plants in the U.S. in their most recent report--as captured under U.S. Assembly Plants:

In 2003, Honda marks the 24th anniversary of assembling products in America. Honda began with motorcycle assembly in Ohio, and now has eight state-of-the-art plants in the United States. In 2002, Honda's U.S. plants assembled 1.47 million Honda vehicles, motorcycles, ATVs and power-equipment products. These operations have expanded as demand for Honda and Acura products continues to grow. The latest addition is an $11 million plant in South Carolina dedicated to the assembly of Honda AquaTrax personal watercraft. Expansions such as these will boost Honda's capital investment in the U.S. to more than $5.9 billion and raise employment levels to more than 24,000 associates. This is all part of our long-standing philosophy to build products in the markets where they are sold.

[Luis Gonzalez]

If Marx was right, then our Founders were wrong.

We're on our way to the 228th anniversary of proving Karl Marx (and you) wrong.

Marx's anti free trade empire didn't last one third as long as we have.

Keep defending Marx and knocking our Founders Willie.

[Willie Green]

Once again, there were no peasants in Castro's revolution Willie, and there was no economic base for his seizure of power, but I will not get you to understand that.
Castro's "revolution" was conceptualized and carried out by people very much like you Willie. Pseudo intellectuals who embraced Marx and hated America.

And no popular support from the Cuban people?
Gee Luis, I was unaware that pre-Castro Cuba had such a large population of psuedo-intellectuals.
Either that or the Cuban people must've been extremely ignorant, apathetic, ambivalent, docile and sheepish to simply stand aside and let a small band of extremists overthrow their government.

[reg45]

Willie is an idiot (even lower than a moron). An as for Marx, he may have gotten an occasional thing correct - even a stopped clock is right twice per day! However, Marx totally failed by trying to describe a complex subject like economics with a simplistic theory like the theory of labor - total Barbra Streisand.

[Luis Gonzalez]

"A $549 billion trade deficit in goods, and increasing penetration of foreign firms into key sectors of the domestic American economy, indicate how rivals are running up the score."

Do you think that this guy paid for his house and car with cash, or did he run up his own "trade deficit"?

[Willie Green]

If Marx was right, then our Founders were wrong.

Our Founders were the ones who were right, Luis.

"We are infinitely better off without treaties of commerce with any nation."

--Thomas Jefferson to James Madison, 1815.

YOU'RE the one supporting Marxist theory with your Constitutionally subversive "Free Trade" treaties.

[Willie Green]

The truth is only prosperous nations can afford to import more goods than they export,

Not true. We're doing it by going deeper into debt.

[Luis Gonzalez]

Willie, Castro was succesful because he lied.

Castro promised to overthrow Fulgencio Batista who had seized power illegally, restore the Cuban constitution, and conduct free elections. Once he seized control, he did not do any of the above.

His supporters defected as soon as they saw what a monumental mistake they had made, Castros's primary support came from the middle class in Cuba. The people who helped Castro had no economical issues.

You are showing your ignorance Willie.

[Luis Gonzalez]

You friggin' moron!!!!

Show me where I've said one damned word about free trade treaties!!!

You're a liar, an idiot, a communist, and a moron!

Free trade treaties are NOT FREE TRADE WILLIE!!!!

[Willie Green]

Attaboy, Louie!
I love it when you get hotheaded and emotional and begin to curse and call me nasty names.
Go ahead, rant and rave.
Get all that venomous anti-America First! hatred outa your system.

[Willie Green]

Castros's primary support came from the middle class in Cuba.

Yeah. A nation is in deep doo-doo when the middle class becomes discontent.
That's precisely what's happening to our middle class with all this foreign outsourcing.