Message from @AustrianSchoolUbermensch
Discord ID: 694165387071324181
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
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?
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
It's advantage is in you saving a few bucks now
But putting aside economic development
With few exception where foreing investment makes up for it like Singapore
It's immediate gratification
I am incredibly confused
Basically my views are similiar to this
I don't like the leftis shit
But it's the policy under which most countries industrialized
Right
It's not a panacea either though
So you want less net supply of goods in the world and worse material conditions?
You can still fuck up like Argentina