AustrianSchoolUbermensch

Discord ID: 536619858633162754


213 total messages. Viewing 100 per page.
Prev | Page 2/3 | Next

Because you have other factors of production

Oh yeah

The logic still applies tho

Deardorff's general law of comparative advantage
Skeptics of comparative advantage have underlined that its theoretical implications hardly hold when applied to individual commodities or pairs of commodities in a world of multiple commodities. Deardorff argues that the insights of comparative advantage remain valid if the theory is restated in terms of averages across all commodities. His models provide multiple insights on the correlations between vectors of trade and vectors with relative-autarky-price measures of comparative advantage. What has become to be known as the "Deardorff's general law of comparative advantage" is a model incorporating multiple goods, and which takes into account tariffs, transportation costs, and other obstacles to trade.

Models have been made with other commodities

Labour is just like any other commodity

Earlier you were actually getting at the law of diminishing returns

which is good

because you're correct, simply applying nothing but labour time in the absence of other factors of production would decrease marginal value of labour and be inefficient via Says law

"The other part is that there is no inherent difference between nations in how well they can potentially manufacture something"

You sure?

So what about minimum wage laws? Country A has them at 15Y and country B has the minimum wage at 5Y

Both countries produce cars and jobs making cars are all minimum wage

cetrius paribus which one is better?

not relevant

"oversupply of labour"

No such thing

That's a subjective term your using

not relevant

so we have established some countries produce goods cheaper than others

so the theory is correct

What the fuck does that have to do with anything now

It really isn't complicated

The point is output per input not just output

opportunity cost

It's all opportunity cost

country A produces more Y with less Z than B

so it makes sense for them to make it

apply this to two commodities

then you can have to countries, one can produce both goods better but its about what you are producing at the expense of

I'm not sure you understand the logical law

It's so simple, do countries produce goods at differing opportunity costs? Yes or no?

Mate I think you should stop digging yourself a hole here

Just watch this

I have to keep re-reading what you're saying because I must be missing something.

So what's wrong with the law or free trade again?

I am incredibly confused

So you want less net supply of goods in the world and worse material conditions?

I know what you want, I want an argument for it

You see the link between those to things

I do not understand

Decreased costs means increased capital accumulation

meaning more investment expenditure

increased roundaboutness of production

and therefore more supply over the long run

and better supply

How does increased costs do that without hindering standards of liviing?

"As you save money from cheap imports you receive lesser wages"

What the fuck

You increase the net quantity of capital and supply and therefore increase wages as each worker increases in marginal value

Yeah, but people get new jobs with the freed up capital

new investments

Creative destruction

Capital moves everywhere all the time

Please tell me you're like 16

Have living standards got better or worse during this time of decreased national capital flow (of which I'll grant) or not?

Yeah, exactly

How do you improve technology?

This is what happens

you decrease costs

increase supply

increase capital accumulation

increase investment

that furhter decreases costs

increases supply per inputs

increases capital

increases investment

I don't think you realise just how wrong you are right now mate

My head hurts

I'm gonna assume you're a young guy and you'll learn with time

When you have an actual argument against free trade that doesn't break a logical law ping me

John Maynard Keynes

Freidman

All of them

everyone

they all agree on two things

free trade is good

rent controls are bad (not Marx for this one lol)

I recommend constructing a well thought out argument

According to an apodictic logical law

Free trade, increases net supply of goods with the same amount of inputs

Do you dispute this?]

It's very simple

So at some point the logical law is broken?

In the future increased supply is bad?

That doesn't make....any sense

HOW DOES HAVING MORE GOODS AND SERVICES AT A LOWER PRICE MAKE YOU LESS PRODUCTIVE?

213 total messages. Viewing 100 per page.
Prev | Page 2/3 | Next