AustrianSchoolUbermensch
Discord ID: 536619858633162754
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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.
Look ^
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
WHAT
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
Right
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
How
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
What
Yes
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
Marx
John Maynard Keynes
Freidman
Hayek
Mises
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
Okay?
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
What
How
HOW DOES HAVING MORE GOODS AND SERVICES AT A LOWER PRICE MAKE YOU LESS PRODUCTIVE?
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