Message from @Mr. Nessel
Discord ID: 694165988060692511
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
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?
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
I know what you want, I want an argument for it
I'm willing to put up with higher costs of goods now if that allows my economy to develop in the long term
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