Message from @Deleted User
Discord ID: 800216307915030588
tl;dr wrong because full employment assumption, industry stripping, etc
@slavecaste What is the concept of "free trade" exactly?
The fact that we can trade globally without any tariffs and it'd be all good
So what is the problem with it?
Yes it does
In principle it works, specialisation and labour division increases efficiency
If there was no cost to transport or sell/buy goods (ie no tax, costs to enter market ect.) Then it would be fine
The reason it doesn't work is because of geopolitical concerns and unfactored costs
You can have that without free trade
There are way more reasons that it won't work that aren't even that
Because it doesn't work how theorized (wages fall, industries disappear, unemployment rises, etc)
Competitive advantage had nothing to do with free trade, I do not agree with the author combining the two. Unemployment may rise in the short term but will fall in the long term
And industries dissapering is not it "not working"
You would expect industries to dissaper
It only falls due to government stimulus, not free trade
That is not how it is theorized.
Yes it did? What? LOL
Inefficient industries wither away leaving only what is nessicary
Its an argument in favour of free trade but the concept is still sound without free trade
But the industries that do wither away are efficient, not inefficient.
No. Take coal in the UK for example
Shit you're right
The concept is retarded even without free trade and to use it as a defense for free trade is shitbrain.
I disagree with Thatcher's methods but the coal mines were inefficient and the workers were holding the government hostage
Its good for coal mine workers
Its not good for the country as a whole
Well the industry had become bloated and inefficient and could not survive without the government propping it up
We aren't talking about Britain first of all
We are talking about America
The concept of competitive advantage is a truism
Socialist countries practiced it
Fudal lords practiced it
I do not believe in free trade
Second of all once the government props up those industries again (either through nationalizing or bailing out) it doesn't become any more inefficient.
No it isn't