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To: Toddsterpatriot

The answer is simple: comparative advantage can fail in three ways. First, a super power needs to be independent. If comparative advantage decreases independence sufficiently, it will lose power. Second, foreign markets may arise that actual intend to reduce the super power's independence. For example, if the Chinese actually do intend to take over the planet, they can provide value in entire market sectors below the true cost. Finally, foreign markets can arise that serve to abuse labor and the environment -- due to the lack of ethical consideration on the part of agents of supply.

If trade exists that damages the super power's independence, and harms the global environment and abuses workers, the consuming country loses in the long run. In effect, it sells out and harms others in the process.

For example, if China is supplying land to factories that produce computer components, and computer component suppliers in America can prove it, they should be able to go to an American trade authority and ask for redress. Lay tariffs on the offending country until it relinquishes its predatory practices. We do this today, but the problem is that we're not aggressive enough in going after China. Why? In short, it's a comedy of errors that culminates in treason.

The Chinese will eat us for dinner if we let them. They're playing in the jungle, and we're trying to be gentlemen. Gentlemen should be strong enough to protect their families. If they don't, they're not gentlemen.


190 posted on 07/05/2005 8:58:55 PM PDT by John Filson
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To: John Filson

All interesting points, but I thought we were talking about greed?


191 posted on 07/05/2005 9:15:45 PM PDT by Toddsterpatriot (If you agree with Marx, the AFL-CIO and E.P.I. please stop calling yourself a conservative!!)
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