Free Republic

Economists are Making a Grave Mistake The economic concept of "comparative advantage" is the holy dogma of "free trade", economic globalization, and offshore outsourcing of jobs. Although comparative advantage is generally true for what economists traditionally measure, economists have ignored some important counter-factors. It indeed does optimize economic output under ideal conditions. However, there are important factors which make the situation less than ideal: Disruption of distribution or communications paths Restrained flow of labor The theory mostly addressed output (goods and services), ignoring job availability, stability, and other important factors. Past trends may not be indicative of future trends. Distribution...

BEIJING -- For years, China has been trying to end Microsoft Corp.'s monopoly on its computers. It has tried to develop its own operating system. It has appealed to the patriotism of consumers. Now, it is turning to the law. Officials say a new law will be announced by this summer requiring a minimum percentage of software bought by the government be produced in China. That's crucial in a country where the government accounts for 25 percent of the $30 billion software market. No one is saying what that minimum will be -- some say it may be as high...