It's called comparative advantage. Basically no one person or nation can do everything more efficiently than another person or nation. Therefore by trading it allows one nation to do what it can do more efficiently while allowing the other nation to do what it does better. Of course, the American trucker may be worse off, that is unfortunate, but American society is made better off by the trade between nations. American workers can then focus on what it does more efficiently.
“It’s called comparative advantage. Basically no one person or nation can do everything more efficiently than another person or nation. Therefore by trading it allows one nation to do what it can do more efficiently while allowing the other nation to do what it does better. Of course, the American trucker may be worse off, that is unfortunate, but American society is made better off by the trade between nations. American workers can then focus on what it does more efficiently.”
I used to 100% believe the above too - then I realized how wrong I was.
the American trucker may be worse off, that is unfortunate, but American society is made better off
No we won't be better off pal. You think the American trucker above will keep his standard of living if he has to come down to the Mexican truckers income level? Because that is exactly, eventually what will happen.
Gezzz....
After reading your previous posts I'm sure you understand that we know what's best for you.
Comparative advantage is a measure of natural resources, economies of scale and technological innovation. Your brand of classical economics of the industrial revolution with the attendant grinding poverty for wage earners really sucks. Not only is it an indeterminate system (it has more unknowns than equations) the notion that profits can only be maintained if wages are reduced to meet a decrease in demand leads to an increased rate of decline in demand. IOW, fewer people making less money leads to a decreased demand for goods and services. Henry Ford was excoriated by fellow industrialists for the ‘exorbitant’ wages that he paid his labor force. Of course, those wages along with the technological innovation of the assembly line brought the automobile out of its status as a rich man’s toy. scarface 367 apparently wants to return to the ‘good old days’ when only the wealthy enjoyed any amenities or leisure.
You sound just like Jesse Jackson the first time I heard him talk, I’ll quote him verbatim—”blah, blah, blah. Blah, blah, blah and blah.” You made as much sense as he did. All double talk. Unless, of course, I read you wrong? Or were you speaking corporate talk?