Message from @AustrianSchoolUbermensch

Discord ID: 694163617465106523


2020-03-30 12:33:09 UTC  

cetrius paribus which one is better?

2020-03-30 12:33:16 UTC  

I don't like minimum wage laws because they don't actually adress the issue of oversupply of labour

2020-03-30 12:33:30 UTC  

not relevant

2020-03-30 12:33:40 UTC  

"oversupply of labour"

2020-03-30 12:33:42 UTC  

No such thing

2020-03-30 12:34:25 UTC  

People making better wages off of the car industry is better. I'm aware that it'll make cars marginally more expensive

2020-03-30 12:35:06 UTC  

And yes there is oversupply of labour

2020-03-30 12:35:21 UTC  

That's a subjective term your using

2020-03-30 12:35:32 UTC  

not relevant

2020-03-30 12:35:51 UTC  

Though it's a subjective category I think it's fair to say there are too many low wage/low skill workers

2020-03-30 12:35:51 UTC  

so we have established some countries produce goods cheaper than others

2020-03-30 12:35:58 UTC  

so the theory is correct

2020-03-30 12:36:05 UTC  

In the moment

2020-03-30 12:36:22 UTC  

It doesn't tell you about peotential output

2020-03-30 12:36:48 UTC  

What the fuck does that have to do with anything now

2020-03-30 12:37:13 UTC  

It really isn't complicated

2020-03-30 12:37:40 UTC  

The point is output per input not just output

2020-03-30 12:37:51 UTC  

opportunity cost

2020-03-30 12:37:59 UTC  

It's all opportunity cost

2020-03-30 12:38:15 UTC  

country A produces more Y with less Z than B

2020-03-30 12:38:23 UTC  

so it makes sense for them to make it

2020-03-30 12:38:47 UTC  

Yeah in a given moment

2020-03-30 12:38:48 UTC  

apply this to two commodities

2020-03-30 12:39:28 UTC  

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

2020-03-30 12:39:51 UTC  

I'm not sure you understand the logical law

2020-03-30 12:40:11 UTC  

A factory doesn't take inherently more Z to produce B depending on which country it's in

2020-03-30 12:40:20 UTC  

That's entirely variable

2020-03-30 12:40:25 UTC  

WHAT

2020-03-30 12:41:31 UTC  

Industrial techniques and the like advance over time as long as you have an industry to begin with

2020-03-30 12:42:51 UTC  

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

2020-03-30 12:45:25 UTC  

Mate I think you should stop digging yourself a hole here

2020-03-30 12:45:33 UTC  

Just watch this

2020-03-30 12:45:33 UTC  

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

2020-03-30 12:46:35 UTC  

The advantage free trade offers you is that you get immediate gratification by getting stuff cheaper

2020-03-30 12:46:51 UTC  

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

2020-03-30 12:47:32 UTC  

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

2020-03-30 12:47:48 UTC  

Because it has a short time horizon

2020-03-30 12:48:02 UTC  

It's advantage is in you saving a few bucks now

2020-03-30 12:48:12 UTC  

But putting aside economic development

2020-03-30 12:48:32 UTC  

With few exception where foreing investment makes up for it like Singapore