Message from @Draco

Discord ID: 503321308940206080


2018-10-20 21:33:15 UTC  

That is a different type of specialisation. What it has to do with free market?

2018-10-20 21:33:23 UTC  

https://cdn.discordapp.com/attachments/452955238186614794/503319849968074762/sans.png

2018-10-20 21:33:25 UTC  

It's just one example

2018-10-20 21:33:49 UTC  

Technological specialisation increases productivity.

2018-10-20 21:33:54 UTC  

I mean, autarky is just generally a poor idea

2018-10-20 21:34:09 UTC  

Every state has a maximum amount of production they can hypothetically achieve in each field, limited by resources, labor, capital, and so on

2018-10-20 21:34:23 UTC  

We're not in a post scarcity economy

2018-10-20 21:35:28 UTC  

It is not. What Autarky does is something like social welfare. Everyone survives, so overall quality is lower. Free market destroys weak competitors so quality is higher. But this higher quality also entails destruction of relatively poor business owners, who cannot compete with MNCs.

2018-10-20 21:35:49 UTC  

So, you destroy businesses today and benefit tomorrow

2018-10-20 21:36:35 UTC  

Equal tariffs would also produce a large amount of immediate damage as well

2018-10-20 21:37:20 UTC  

Imports/exports are required to sustain each state and its current quality of life

2018-10-20 21:37:27 UTC  

They won't. If they are imposed on nations which export more to the country putting tariffs. That is why Trump's tariffs are a success.

2018-10-20 21:37:35 UTC  

A success?

2018-10-20 21:37:41 UTC  

It's going to harm farmers in the long run

2018-10-20 21:37:48 UTC  

It already is, actually

2018-10-20 21:38:03 UTC  

Exports are going to decrease

2018-10-20 21:38:06 UTC  

You were talking short term. You said immediate damage

2018-10-20 21:38:17 UTC  

Both short and long term

2018-10-20 21:38:29 UTC  

In short term they are benefiting USA

2018-10-20 21:38:58 UTC  

Even then, you're more or less saying that short term benefits outweigh producing something sustainable in the long term

2018-10-20 21:39:11 UTC  

No. I am saying that they are theoretically equal.

2018-10-20 21:39:24 UTC  

Not particularly...

2018-10-20 21:39:58 UTC  

International trade, particularly without tariffs, shifts out the ultimate amount of potential productivity possible

2018-10-20 21:41:15 UTC  

It'd force some short term shifts in specialization (potentially, domestic industries don't need to pay transportation fees as high and would have shorter delays in shipment, so there are a lot of domestic boons), but in the long run, would result in greater overall productivity

2018-10-20 21:41:59 UTC  

That overall loss is equalised by earlier boons and increase in government exchequer. You can literally prove it via mathematical equations

2018-10-20 21:42:42 UTC  

Over time, however, the amount of damage caused would continually increase

2018-10-20 21:42:49 UTC  

Leading to the overall loss being by far greater

2018-10-20 21:43:29 UTC  

And a large portion of the immediate benefit perceived was due to rapid, last minute purchases of products before the tariffs were put in place

2018-10-20 21:43:45 UTC  

Hell, there's got to be a massive bailout now due to lost sales by farmers

2018-10-20 21:43:55 UTC  

$12,000,000,000 US dollars going straight to that

2018-10-20 21:44:03 UTC  

Do you know what is cost of capital?

2018-10-20 21:44:25 UTC  

I do

2018-10-20 21:44:51 UTC  

So, that continually increasing damage, if discounted would be actually decreasing.

2018-10-20 21:45:01 UTC  

Because it would be divided by exponential series

2018-10-20 21:45:25 UTC  

And exponential series is one of the fastest growing series that naturally exists

2018-10-20 21:45:51 UTC  

exponential series?

2018-10-20 21:46:01 UTC  

1/r^n

2018-10-20 21:46:09 UTC  

I know what exponentiality is

2018-10-20 21:46:34 UTC  

So? You know that for every passing year, we increase exponent by 1

2018-10-20 21:48:37 UTC  

ehm, what?

2018-10-20 21:49:22 UTC  

Discount rate effect increases exponentially.