Message from @AustrianSchoolUbermensch
Discord ID: 694163482492534844
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
so the theory is correct
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
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
Just watch this
Not inherently. There's only certain commodities which actually have an inherently differing opportunity cost depending on the country
Fracking is more costly than extracting in Saudi Arabia for example. Fields differ inherently in what climates they are in, how fertile they are etc.
Factories almost entirely depend on technical expertise or cheap labour
The advantage free trade offers you is that you get immediate gratification by getting stuff cheaper
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?
Because it has a short time horizon