Message from @AustrianSchoolUbermensch
Discord ID: 694163009605468202
The other part is that there is no inherent difference between nations in how well they can potentially manufacture something
Japan had a comparative disadvantage in car manufacturing prior to insituting tariffs
Under free trade conditions they just would've been stuck with the immediate gratification of importing cheaper foreign cars
"The other part is that there is no inherent difference between nations in how well they can potentially manufacture something"
You sure?
I'm sure at least in a geopgraphic sense. I know Africans aren't going to make processors and whatnot
It's different in the primary sector
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?
I don't like minimum wage laws because they don't actually adress the issue of oversupply of labour
not relevant
"oversupply of labour"
No such thing
People making better wages off of the car industry is better. I'm aware that it'll make cars marginally more expensive
And yes there is oversupply of labour
That's a subjective term your using
not relevant
Though it's a subjective category I think it's fair to say there are too many low wage/low skill workers
so we have established some countries produce goods cheaper than others
In the moment
It doesn't tell you about peotential output
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
Yeah in a given moment
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
A factory doesn't take inherently more Z to produce B depending on which country it's in
That's entirely variable
WHAT
Industrial techniques and the like advance over time as long as you have an industry to begin with
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