Charging 6 Unobtainium coins (interest = 1 coin) to borrow 5 U-coins when only 5 coins exist in the entire world would be usury

@AustrianSchoolUbermensch Oh ok, some of the normies will be confused though

Hoppe is great

I need to finish reading DtGtF

edited it

He is great in parts

Can get abit spicy of course

@AustrianSchoolUbermensch I understand the economy but economics is valuefree right? Groups can and will pick traditional ways of living over the optional economic option.

Yes You can understand economics and not be materialistic

e.g you can understand that tariffs are an overall bad thing on your economy and still want them to "conserve communities" or whatever reason, but as long as you understand the long run consequences

but then it becomes a value judgment

Gee I wonder how much better Japan would be now if it didn't create car manufacturing through tariffs

Likewise Korea with its shipbuilding industry and Samsung etc.

Just so bad for the economy

Think of all the cheap shit they could've got with their economy stuck in the primary sector

It's weird how Austrians hate the labour theory of value and still make use of Smith's and Ricardo's model to justify free trade

Just think for a minute about the example usually given about wine and cloth being traded between Portugal and England
Somehow Portugal can just scale up the output of vineyards because they had timesavings. You just throw more labour at it and the Vineyards magically produce more
Somehow there's a magical advantage for England in producing cloth (cloth not wool) so only England should make cloth because you know Portugal as a country is just magically incompetent at turning wool or cotton into cloth

Tariffs are a good thing. The only upside to free trade is that you have marginal cost savings which can have some use if you want cheap raw materials for your industries so they can be competitive enough for export or if you want intermediate/labour intensive goods like steel for further use in your high value added manufacturing

But even then western wages are hardly competitive enough to make it worthwhile to produce anything for export in a western country, being limited to exports which depend on their reputation/branding/quality

The LTV is another issue. Arguement for free trade is that when its cheaper to import foreign, resources at home can reallocated elsewhere for better use. Portugal isn't magically incompetent at producing at turning wool or cotton into cloth. Tarrifs have use like protection of culture for example in agricultural communities which is Abby I support them for that reason though.

@Mr. Nessel What are you even going on about

> "Somehow Portugal can just scale up the output of vineyards because they had timesavings. You just throw more labour at it and the Vineyards magically produce more"

You talk about free trade and don't even bring up the concept of opportunity cost?

Opportunity cost isn't the main argument for free trade. It was comparative advantage

Wow

You're a meme

An actual right wing communist meme

Ah yes I'm a communist for not liking free trade and supporting the policy under which modern capitalism developed

Big brain

All the law of comparative advantage states is that countries will increase net supply of goods by producing goods at the lowest relative opportunity cost

Opportunity cost was characterized in terms of time being invested and I brought that up

I must be missing something?

Are you just saying labour time is to limited?

Because you have other factors of production

I'm saying the model by which free trade is justified relied on two flawed assumptions, one being that it implicitly endorse the LTV and secondly that comparative advantages are temporary in manufacturing

Oh yeah

The logic still applies tho

Well yeah in a given moment it demonstrates you can save a bit of money

But it's not how you develop an economy

Deardorff's general law of comparative advantage
Skeptics of comparative advantage have underlined that its theoretical implications hardly hold when applied to individual commodities or pairs of commodities in a world of multiple commodities. Deardorff argues that the insights of comparative advantage remain valid if the theory is restated in terms of averages across all commodities. His models provide multiple insights on the correlations between vectors of trade and vectors with relative-autarky-price measures of comparative advantage. What has become to be known as the "Deardorff's general law of comparative advantage" is a model incorporating multiple goods, and which takes into account tariffs, transportation costs, and other obstacles to trade.